Question

A team of analysts at Amazon is researching the viability of producing a smart watch. How might they estimate potential demand for their smart watch?A. Consider the four-step process that many companies follow to estimate the market demand curve for their product. a. survey customersb. plot the demand curvec. scale up the quantities demanded by the survey respondentsd. add up the total quantity demanded by the customers at each price pointB. Select two factors that the analysts want to keep in mind to create the most accurate demand estimates.a. cost of inputs to productionb. information about climate changec. existing competition in the marketd. consumer demographic information

Answer 1

Answer:

1. Estimating demand.

1. Survey customers
2. Add up the total quantity demanded by the customers at each price point
3. Scale up the quantities demanded by the survey respondents.
4. Plot the demand curve

In order to estimate the market demand for the smart watch, the analysts can use a sample of the population. From the sample they can survey some customers. The results of the survey will give them an idea of the demand which they can then add up to find the total quantity demanded.

They should then scale up the quantities to enable them apply it to the wider population. Using this information they can then plot market demand.

2. Two important factors

• c. existing competition in the market - The competition in the market will let them know how much potential market share they have and how much they can charge based on the amount that the competitors are charging.
• d. consumer demographic information - by analysing demographic information, the analysts can better ascertain the demand for their products based on important demographic data such as income status.

Answer 2

The existing competition in the markets and the consumer demographic information. Thus the options C and D are correct.

What is the market demand curve ?

The curve is the summation of the individuals demand curves and shows the quantity demand of the good for all individuals the varying prices.

For estimating the demand the four steps include, the survey customer, adding the total quantity demanded by the customers at each price point, then scale up the quantities that are demanded by the survey respondents, and; last plot the demand curve.

Find out more information about the team of analysts.

brainly.com/question/26396953.