Which of the following is true of business markets?
A) The business marketer normally deals with far more but far smaller buyers than the consumer marketer does.
B) Business markets generally involve far less money and items than do consumer markets.
C) Business demand is derived demand as it ultimately derives from the demand for consumer goods.
D) A small percentage decrease in consumer demand can cause a large increase in business demand.
E) The total demand for business products is much affected by price changes in the short run.

Question

Quizplus · Accepted Answer

Business demand is derived demand as it ultimately relies on the demand for consumer goods. Businesses buy goods and services to produce goods and services for consumers. Therefore, the demand for goods and services in business markets is a result of the demand for those goods and services in consumer markets. Choices A, B, D, and E are incorrect because they do not accurately describe business markets. Business markets typically involve fewer buyers but larger transactions, and changes in consumer demand do not always have a direct impact on business demand, among other differences.

Which of the Following Is True of Business Markets