Demand and Supply Analysis Quiz

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Questions and Answers

What is the first step in the study of demand?

Forecast future demands

Identify the consumers (correct)

Gather information on total past demands

Evaluate future demand projections

Which of the following is NOT a primary question addressed in the study of demand?

Is there a demand?

Who are the consumers?

Can we forecast future demands?

What are the future production rates? (correct)

What characteristic is NOT used in market segmentation?

Type of consumers

Flavor preference (correct)

Location

Income classification

During the demand study, which process comes after gathering information on total past demands?

Evaluate past demand patterns Signup and view all the answers

Which of these processes is critical for answering the question of whether there is a demand?

Identifying potential consumers Signup and view all the answers

Which age bracket has the highest population according to the provided data?

10-18 years old Signup and view all the answers

What is one method mentioned for gathering total demand data?

Trade associations Signup and view all the answers

Which age group has the lowest population according to the data provided?

46-54 years old Signup and view all the answers

How many individuals are aged 28-36 years old according to the provided data?

4,200 Signup and view all the answers

Which organization is NOT listed as a source for gathering demand data?

World Health Organization Signup and view all the answers

What is one challenge mentioned regarding the gathering of total demand information?

It cannot be discarded Signup and view all the answers

What is the population of individuals aged 19-27 years old?

5,000 Signup and view all the answers

Which question is NOT considered essential in the total demand study process?

Who are the competitors in the market? Signup and view all the answers

How is the total past demand for a product computed?

Total production + Total consumption + Imported units Signup and view all the answers

According to the hypothetical data, what is the total demand for poultry eggs in Davao in 2014?

2,200,000 pcs Signup and view all the answers

What adjustment is made to the past demand calculation if all local production is sold locally?

Only include local production and imported units in the total Signup and view all the answers

Why is care needed in calculating total demand?

To avoid duplication of local production and sales Signup and view all the answers

If the total number of poultry eggs produced outside Davao but sold in Davao is not accounted for, what will happen?

The total demand will be underestimated Signup and view all the answers

What is the total past demand if only the local production and outside production are included, excluding consumption?

1,400,000 pcs Signup and view all the answers

What sum is included in the total past demand calculation when assessing poultry eggs?

Local and imported production Signup and view all the answers

Which of the following scenarios leads to an accurate calculation of total past demand?

Counting all local production, consumption, and imports Signup and view all the answers

What is the first step in conducting a demand study?

Identify the consumer Signup and view all the answers

Which of the following is NOT a component of the study of supply?

Identify marketing trends Signup and view all the answers

Why should indirect competitors be included in the study of supply?

They can influence the buying behavior of consumers. Signup and view all the answers

What is the last step in the major processes of the study of supply?

Evaluate the result of future forecast Signup and view all the answers

What crucial information should be gathered about competitors in a supply study?

Their marketing strategies Signup and view all the answers

In a demand study, what should be evaluated to understand future consumer needs?

The historical demand pattern Signup and view all the answers

Which element is critical for categorizing competitors in the study of supply?

Classifying them as direct or indirect competitors Signup and view all the answers

Which of the following is a potential challenge when gathering historical supply data?

Availability of accurate records Signup and view all the answers

What is the first step in conducting the market study as described?

Present a comparison between demand and supply data Signup and view all the answers

Why is determining market share significant in a project feasibility study?

It plays a significant role in assessing profitability Signup and view all the answers

Which factor is NOT considered in computing the selling price of a product or service?

Market trends Signup and view all the answers

What is an essential aspect of the marketing program in a feasibility study?

Outlining the channels of distribution Signup and view all the answers

Which adjustment step is necessary if there is a significant price difference between similar products?

Make necessary price adjustments Signup and view all the answers

What role does the marketing staff play in the marketing program?

To execute efficient promotional strategies Signup and view all the answers

Which step is involved in determining the expected share in the market?

Comparing demand with supply data Signup and view all the answers

What is a key conclusion to draw from each major aspect of the market study?

To state the result of the evaluation Signup and view all the answers

Study Notes

### Demand

Total demand is calculated by adding local production, consumption, and imported units.
Past demand can be calculated by adding the total units produced in the area, total units consumed in the area, and total units produced outside the area but sold in the area.
Future demand is a projected demand for a product.
To determine if a product is in demand, consider the following:
- Identify consumers, including:
  - Type of consumer
  - Income classification
  - Use of the product
  - Location
  - Age
- Gather information on past demand
  - Sources include: manufactures, retailers, trade associations, government agencies, local government units, universities and colleges, and existing users of the product.
- Evaluate past demand patterns
- Forecast future demand
- Evaluate future demand projections

### Supply

Supply is analyzed to determine if there are existing suppliers of a proposed product.
To determine if a supplier exists consider the following:
- Conduct a thorough study on competitors.
- Gather information on historical supply.
- Evaluate supply growth patterns.
- Forecast future supply.
- Evaluate the result of future forecast.

Market share is a significant factor in a project feasibility study.

### Pricing

The price of goods or services is determined by demand-supply situations.
Consider the following factors when setting prices:
- The cost of making the product, including direct materials, direct labor, and factory overhead
- Proposed mark up on finished goods
- Comparison of proposed selling price with similar products
- Expected operating expenses
- History of prices of similar products

Marketing Program

This section of the study includes the following:
- Target market
- Terms of sale
- Channels of distribution
- Transportation arrangement
- Estimated selling price
- Promotion and advertising activities
- Distribution network
- Packaging
- Marketing staff
- Estimated cost of marketing

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Description

Test your knowledge on the concepts of demand and supply. This quiz covers total demand calculations, past and future demand projections, as well as the factors influencing consumer behavior and market supply. Enhance your understanding of economic fundamentals with practical examples.