Which of the Following Predictions About the Impact of E-Commerce

question 115

Multiple Choice

Which of the following predictions about the impact of e-commerce on traditional businesses is likely to be most accurate?

• A) E-commerce will have little impact on most traditional businesses, because only a few types of products can be sold effectively over the Internet.
• B) Traditional brick-and-mortar firms will enter the e-commerce market by creating their own web sites.
• C) E-commerce will prove to be very successful in competing against traditional firms in B2C markets, but will have much less success in B2B markets.
• D) Brick-and-mortar businesses will cease to exist within twenty years.

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Definitions:

Shortage

A scenario in which the need for a product or service surpasses the amount available at a particular price.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price over a specified period of time.

Law Of Demand

A fundamental economic principle stating that, all else being equal, as the price of a good or service decreases, consumer demand for it will increase, and vice versa.

Price

The quantity of currency projected, called for, or dispensed as remuneration for something.