Evan Has Developed a Technology That Will Help Reduce Distracted

question 37

Multiple Choice

Evan has developed a technology that will help reduce distracted driving accidents by blocking text messages from mobile phones while the owner is driving. His proposal focuses on the buyers' priorities, highlights his past successes as an innovator, acknowledges challenges in the marketplace, includes a detailed and accurate revenue model, and describes how the technology will benefit every mobile phone owner in the world. Which of the following is most likely the reason why his proposal was rejected?

• A) no problem
• B) unrealistic ambition
• C) flawed spreadsheets
• D) wrong team
• E) perfect plan

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Definitions:

Giffen Good

A product that sees an increase in demand as its price rises, contrary to the law of demand, typically due to the absence of close substitutes and the product being an inferior good.

Perfect Complements

Goods that are consumed together in fixed proportions, where the utility of one item increases with the consumption of the other.

Income Effect

The change in consumption that results from a change in real income (purchasing power), holding prices constant, reflecting how higher income increases consumption of goods while lower income reduces it.

Income Effect

The change in an individual's consumption choices resulting from a change in their real income.