ENTREPRENEURIAL OPPORTUNITIES
IDENTIFYING AND EVALUATING BUSINESS OPPORTUNITIES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It gets new indirect competitors.
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The product is easy to produce.
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Supply is greater than demand.
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Demand is greater than supply.
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Detailed explanation-1: -When the supply of a good is greater than the demand for that good, a surplus ensues. This drives down the price of the good. Disequilibrium also occurs when demand for a commodity is higher than the supply of that commodity, leading to scarcity and, thus, higher prices for that product.
Detailed explanation-2: -When the decrease in demand is greater than the increase in supply, the relative shift of demand curve is proportionately more than the supply curve. Effectively, both the equilibrium quantity and price fall.
Detailed explanation-3: -A shortage is a situation in which demand for a product or service exceeds the available supply. When this occurs, the market is said to be in a state of disequilibrium.
Detailed explanation-4: -A surplus exists if the quantity of a good or service supplied exceeds the quantity demanded at the current price; it causes downward pressure on price. A shortage exists if the quantity of a good or service demanded exceeds the quantity supplied at the current price; it causes upward pressure on price.