alleryStart learning →How do demographic data help a company?
AThey fix the prices at which it can sell in a free market
BThey decide how much money circulates in the economy
CThey set the level of taxes that the firm has to pay
DThey define its markets and the size of its workforce
Answer & Solution
Correct answer: D. They define its markets and the size of its workforce
1. Demographics help companies define the markets for their products.
2. They also determine the size and the composition of the workforce a company can draw on.
3. That is why businesses tailor marketing approaches and products to the preferences of different generations.
4. Prices in a free market are set by supply and demand, not by demographic data.
5. The money in circulation is controlled through monetary policy and taxes through fiscal policy.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 1 "Understanding Economic Systems and Business", section 1.2 Understanding the Business Environment_
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