What Motivates the Actions of Entrepreneurs in Markets

question 1

Multiple Choice

What motivates the actions of entrepreneurs in markets?

• A)profits.
• B)cost savings.
• C)revenue.
• D)prestige.

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Definitions:

Quantity Supplied

The total amount of a particular good or service that producers are willing to provide at a given price.

Shortage

A market condition where the demand for a product or service exceeds its supply, often leading to higher prices or queuing.

Equilibrium Price

The price at which the quantity of a good demanded equals the quantity of the good supplied.

Surplus

A situation where there is excess of supply over demand in the market, leading to downward pressure on prices.