Crowdfunding Can Best Be Described As

question 7

Multiple Choice

Crowdfunding can best be described as:

• A)obtaining funds from a group of investors
• B)obtaining funds from many people, who together form "the crowd"
• C)raising capital from a large audience, usually through the Internet
• D)a high-risk strategy to raise startup money

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Definitions:

Consumer Surplus

The disparity in what consumers are willing to invest in a good or service compared to what they eventually invest.

Demand Shifts

Occur when external factors lead to a change in the amount of a product or service that consumers are willing and able to buy at a given price, resulting in the demand curve moving rightward or leftward.

New Equilibrium

The point at which market supply and demand balance each other, and, as a result, prices become stable following a disturbance.

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive, measured above the supply curve.