Question

Market demand is known as —

• A. Demand forecasting
• B. Real demand
• C. Supply
• D. None of these

Hint:

Demand forecasting helps in planning production, pricing, and inventory management effectively.

Answer 1

The Correct Option is A

Step 1: Understanding Market Demand.
Market demand refers to the total quantity of a product that consumers in a market are willing and able to purchase at various prices during a specific period.
It represents the combined demand of all individual consumers in a market.
Step 2: Meaning of Demand Forecasting.
Demand forecasting is the process of estimating future demand for a product or service based on historical data, market trends, and analysis.
Thus, market demand is closely related to the concept of demand forecasting.
Step 3: Analysis of options.
- (1) Demand forecasting: Correct — market demand helps predict future sales trends.
- (2) Real demand: Refers to actual sales, not estimation.
- (3) Supply: Indicates availability of goods, not consumer demand.
- (4) None of these: Incorrect — option (1) is correct.
Step 4: Conclusion.
Therefore, market demand is known as demand forecasting.