Factors Leading to the Slow Growth of Demand in Embryonic

question 77

Multiple Choice

Factors leading to the slow growth of demand in embryonic industries include all of the following except the:

• A)poor quality of the first products.
• B)lack of complementary products.
• C)customer familiarity with products.
• D)high production costs of the products.
• E)lack of distribution channels for the products.

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Definitions:

Elastic Supply

A situation where the quantity of a good supplied by producers changes significantly in response to a small change in price.

Tax Burden

The measure of taxes paid as a proportion of income or the overall economic impact of taxes on an individual or business.

Own Price Elasticity

A measure of the responsiveness of the quantity demanded of a good to a change in its own price.

Specific Tax

A tax that is levied as a fixed amount per unit of a good or service, rather than as a percentage of the price.