Question

Suppose an individual buyer purchases three pairs of shoes each year at $50 each pair and that there are 50 million such consumers in the economy.

Compute the total market potential for shoes.

Answer 1

$7,500 million

Step-by-step explanation:

Given the data provided below:

Number of pairs of shoes = 3

Number of consumers in the economy for this = 50 million

Purchase value of each pair of shoes = $50

So, the total market potential for shoes is

= Number of pairs of shoes × Number of consumers in the economy for this × Purchase value of each pair of shoes

= 3 × 50 million × $50

= $7,500 million