Jessica Smith Is Thinking About Starting a Chain of Fitness

question 26

Multiple Choice

Jessica Smith is thinking about starting a chain of fitness centers for young adults ages 18-30. Which of the following is NOT an appropriate criterion for Jessica to test her idea against?

• A) Determine whether the "window of opportunity" is open.
• B) Determine whether a fitness center for young adults ages 18-30 meets the threshold of being a good idea.
• C) Determine the extent to which the notion takes advantage of an environmental trend, solves a problem, or fills a gap in the marketplace.
• D) Determine whether opening a fitness center for young adults ages 18-30 is timely.
• E) Determine whether opening a fitness center for young adults ages 18-30 is a concept that creates value for its buyer or end user.

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Definitions:

Inferior Good

A type of good for which demand decreases as the income of consumers increases.

Demand Curve

A diagram that shows how the quantity of a product demanded by buyers changes according to its price.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good that consumers are willing to purchase at various prices.

Substitute Good

A product or service that consumers can use in place of another to satisfy similar needs or desires, affecting demand as prices change.