alleryThe technique of predicting future demand for goods and services on the basis of the past behaviour of factors affecting demand is known as:
ADemand forecasting
BProfit analysis
CInventory management
DResource allocation
Answer & Solution
Correct answer: A. Demand forecasting
1. The clue is predicting future demand from past behaviour of demand factors.
2. This is precisely demand forecasting.
3. Profit analysis, inventory management, and resource allocation are separate microeconomic tools, so they are ruled out.
_Source: ICAI BoS CA Foundation Paper 4 Business Economics, Ch 1 Unit I "Nature and Scope of Business Economics", p.7_
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