Future Business Leaders of America (FBLA) Hospitality Management Practice Test

Which term best describes the demand for goods or services?

1. Supply Chain

2. Consumer Interest

3. Customer Demand

4. Market Value

The correct answer is: Customer Demand

The term that best describes the demand for goods or services is customer demand. Customer demand refers to the quantity of a product or service that consumers are willing to purchase at various price points within a given period. It is a fundamental concept in economics and marketing, as it helps businesses understand how much of a product or service people are looking for and at what price. Customer demand is influenced by various factors, including consumer preferences, income levels, trends, and economic conditions. This knowledge allows businesses to make informed decisions about production, pricing, and inventory management to align their offerings with consumer needs and market conditions. The other terms convey related concepts but do not specifically define the demand for goods or services. Supply chain encompasses the entire process of producing and delivering a product, from sourcing materials to getting the finished product to consumers. Consumer interest refers more to the level of curiosity or attention that people have towards products, which may not always translate into demand. Market value indicates the price or worth of a good or service in the marketplace, but it does not directly measure demand itself.