Which of the Following Is True About Latent Markets

question 17

Multiple Choice

Which of the following is true about latent markets?

• A) An organization's initial success is based on its competitiveness.
• B) A product has zero demand before it is offered.
• C) A product's demand emerges with a particular political trend.
• D) A product's demand remains incipient in a latent market.

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Definitions:

Too Little Consumption

A situation where individuals or the economy as a whole are consuming less than optimal, possibly leading to underutilization of resources and a decrease in economic wellbeing.

Nonexcludable

A characteristic of public goods where it is not feasible to exclude individuals from using the good, leading to potential free-rider problems.

Common Resource

A resource, like air or water, that is accessible to all members of a society but subject to overuse and depletion.

Negative Externalities

Costs suffered by a third party due to an economic transaction they were not involved in.