Carlos Had Been Thinking of Setting Up a Graphic Design

question 110

Multiple Choice

Carlos had been thinking of setting up a graphic design service business for quite some time.He knew that he wanted to work at home and he now had several leads for prospective customers.He also knew how much money he needed to make to cover his expenses.He had several ways to approach his new business including working by himself or taking on a partner.Both ways needed more thought to determine what each would involve.In terms of the rational decision-making model,Carlos is in which of the following steps?

• A)Defining the situation
• B)Describing and collect needed information
• C)Develop alternatives
• D)Develop agreement among those involved

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Definitions:

Downward Sloping

Describes a line on a graph that depicts a decrease in value or quantity as another variable increases, commonly seen in demand curves.

Demand Curve

A graph representing the relationship between the price of a good and the amount of it that consumers are willing and able to purchase at various prices.

Perfectly Inelastic

A situation in demand or supply where a change in price does not result in any change in the quantity demanded or supplied, represented by a vertical curve.

Price Setters

Firms or entities that have the ability to influence or determine the price of goods or services in the market due to lack of competition or other factors.