The Process of Perceiving the Possibility of a Profitable New

question 67

Multiple Choice

The process of perceiving the possibility of a profitable new business, product or service idea is referred to as:

• A) inspired detection
• B) creative recognition
• C) idea confirmation
• D) opportunity recognition
• E) inspired discovery

---

Definitions:

Demand Equation

A mathematical representation that describes the relationship between the quantity of a good or service demanded and its price, along with other factors like income and prices of related goods.

Supply Equation

A mathematical representation of the relationship between the quantity of a good supplied by producers based on various factors, including price.

Price Ceiling

A legal maximum price set by the government for a particular good or service, aimed at preventing prices from reaching excessively high levels.

Shortage/Surplus

A shortage occurs when demand exceeds supply for a product or service, whereas a surplus occurs when supply exceeds demand, leading to downward pressure on prices.