Why might it be a good idea for a small business owner to create a market demand schedule?

• A. To determine the exact costs of production for each unit sold.
• B. To calculate the business's total revenue without considering consumer preferences.
• C. To estimate how much consumers will buy at different prices, helping set optimal prices and production levels.
• D. To identify the supply curve for competitors in the market.

Answer: (C)

Verified step by step guidance

1. Understand that a market demand schedule is a table that shows the quantity of a good or service consumers are willing and able to buy at different prices.
2. Recognize that for a small business owner, knowing how quantity demanded changes with price helps in predicting consumer behavior.
3. Use the demand schedule to estimate the total quantity consumers will purchase at various price points, which is crucial for setting prices strategically.
4. Apply this information to decide optimal production levels that match expected demand, avoiding overproduction or shortages.
5. Note that the demand schedule focuses on consumer preferences and demand, not on production costs or competitors' supply curves.