Understanding Competition and Market Dynamics

Direct competitors are businesses that sell different products or services that fulfill the same customer need or want.

• True

• False

Market share is the percentage of a target market population that is buying a particular product or service from your business.

• True

• False

A surplus occurs when the quantity supplied is greater than the demand.

• True

• False

The equilibrium point is where the supply curve and the demand curve intersect.

• True

• False

Global competition only affects large multinational corporations.

• True

• False

A company's market share can never be greater than 100%.

• True

• False

Indirect competitors can sometimes pose a greater threat than direct competitors.

• True

• False

An increase in demand will typically lead to an increase in price.

• True

• False

A decrease in supply will typically lead to a decrease in price.

• True

• False

The concept of supply and demand only applies to physical goods, not services.

• True

• False