What presents a major obstacle to using traditional price theory?
A) estimating markups
B) computing costs
C) predicting revenues
D) estimating demand curves

Question

Quizplus · Accepted Answer

Estimating demand curves presents a major obstacle to using traditional price theory because it requires understanding how quantity demanded varies with price, which can be complex and difficult to accurately determine. Traditional price theory relies on the relationship between price and demand, but accurately estimating this relationship can be challenging due to factors like consumer preferences, income levels, and the presence of substitute or complementary goods.

What Presents a Major Obstacle to Using Traditional Price Theory