Question

Regarding population size as a characteristic for analysts to examine

A. Population size alone is an excellent indicator of economic strength.
B. Population size alone is a good predictor of demand for consumer durables.
C. Population size alone is an excellent indicator of market potential.
D. Population size alone is a poor indicator of market potential.
E. Population size alone is a poor indicator of market potential for products such as soft drinks.

Answer 1

Population size alone is a poor indicator of market potential for products such as soft drinks.

Step-by-step explanation:

Population size alone is a poor indicator of market potential. While population size and density can affect birth rates and death rates, they do not directly determine economic strength, demand for consumer durables, or market potential. Other factors such as GDP per capita, income levels, consumer preferences, and market competition also play crucial roles in determining market potential. For example, population size alone cannot indicate the demand for products like soft drinks, as it depends on factors like disposable income, cultural preferences, and market saturation.