Understanding Demand and Innovation in Business

Price Elasticity of Demand (PED) is the (a)   of demand to changes in price.

• responsive

• inelastic

• elastic

• unitary

(a)   is a factor affecting supply.

• Price

• Demand

• Supply

• Competition

Florence is the owner of a small tech startup. She is considering implementing a new software development process. How does this innovation benefit her business?

• Increases production costs

• Reduces market share

• Enhances competitive advantage

• Decreases product quality

Arthur is considering launching a new tech startup. What is a key risk associated with this innovation?

• Increased market share

• High initial costs

• Improved customer satisfaction

• Reduced competition

Leo is an entrepreneur who has recently started a tech company. Which of the following is a role of entrepreneurs?

• Reducing consumer demand

• Innovating new products and services

• Increasing government regulations

• Limiting market competition

Scarlett is planning to buy a new smartphone. Which factor can affect her demand for the smartphone?

• Changes in consumer income

• Changes in production technology

• Changes in the number of suppliers

• Changes in government regulations

What is an example of an entrepreneurial skill?

• Risk aversion

• Financial management

• Avoiding change

• Following trends

Samuel is leading a project to innovate a new product line for his company. Which of the following is NOT a benefit of this innovation?

• Increased market share

• Higher production costs

• Improved product quality

• Enhanced customer satisfaction

Jacob's startup has recently implemented a new business model. What is a potential outcome of this successful innovation?

• Decreased customer loyalty

• Increased operational inefficiency

• Enhanced revenue streams

• Reduced brand recognition

What is usually the primary focus of Ishaan, a budding entrepreneur, when starting his new tech company?

• Minimising risks

• Maximising profits

• Following established trends

• Maintaining the status quo