Assume that you are estimating the demand curve for a product using buy-response data and have collected the following via a survey:
price % who will buy
5.00 1%
4.75 10%
4.50 25%
4.25 45%
4.00 60%
3.75 75%
3.50 90%
assume that research suggests that your target market consists of approximately 500,000 persons. you anticipate that each buyer will purchase an average of 1.5 units of the product. what level of demand can you expect at the $4.00 price? (round to the nearest unit).