How does a business owner discover the business's demand curve?
A)The owner watches its competitors.
B)The owner tries out different versions of a product.
C)The demand curve is found by determining the market equilibrium price.
D)The owner experiments with different prices for its product.

Question

Quizplus · Accepted Answer

The best way for a business owner to discover the business's demand curve is by experimenting with different prices for its product. By varying the price of the product, the owner can observe changes in sales volume and revenue, which can help to reveal the demand curve for the product. This process is often referred to as price testing or price optimization, and is a common practice in marketing and business strategy.

How Does a Business Owner Discover the Business's Demand Curve