Which of the Following Questions Can Give a Potential Business

question 41

Multiple Choice

Which of the following questions can give a potential business owner insight on future and current demand?

• A) Does the idea solve a consumer's want or need?
• B) How much competition exists?
• C) Can the idea be turned into a profitable business?
• D) Does the business owner have the appropriate skills needed in order to be successful?

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Definitions:

Equilibrium Price

The market price at which the quantity of a good or service supplied is equal to the quantity demanded, leading to market balance.

Market Price

The amount of money that a product is bought or sold for in the marketplace; determined by supply and demand.

Surplus

A situation where the quantity supplied of a good exceeds the quantity demanded, often leading to lower prices or stored inventory.

Shortage

Occurs when the quantity demanded of a good exceeds its supply at a given price, leading to an unmet demand in the market.