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How does understanding demand and supply help an entrepreneur?

Answer and explanation

Correct answer: In making production and pricing decisions

Demand indicates customers’ willingness and ability to buy, while supply indicates the quantity available from sellers. Studying both helps an entrepreneur estimate sales, plan production, manage inventory, and make pricing decisions. The other options do not follow from demand-and-supply analysis, so A is correct.

Related tags

Demand And SupplyPricingProductionEntrepreneurship DevelopmentMsme And Business EntrepreneurshipBusiness StudiesClass 11 Mcq

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