Question

1. an entrepreneur notices a long line outside a new boba tea shop every day after school. what does this most likely indicate? a) supply is greater than demand b) demand is strong for the product c) customers are unsatisfied d) the business should lower prices 10. a company sells phone chargers for $25 each. when the price is lowered to $15, sales double. what does this demonstrate? a) price has no effect on demand b) lower prices can increase demand c) customers do not care about cost d) supply determines demand 11. which factor would most likely reduce demand for a product? a) a new competitor enters the market with lower prices b) the product becomes more popular on social media c) the product is easy to access and convenient d) the product solves an urgent problem 12. a sneaker cleaning service is being considered for a school - based business. what is the best way to test demand before launching? a) open the business immediately and see if it fails b) conduct a survey asking students if they would pay for the service c) assume demand exists because sneakers are popular d) copy another schools business idea 13. which of the following best explains why the pumpkin spice latte sells extremely well in the fall but not year - round? a) seasonal trends influence demand b) starbucks limits its production ability c) customers only buy it when it is free d) prices are too high outside of fall 14. which of the following shows a product with consistently high demand regardless of season or trend? a) designer handbags b) bottled water c) halloween costumes d) christmas trees 15. if an entrepreneur surveys students and finds that only 2 out of 30 would pay for a $10 milkshake, what should they conclude? a) strong demand exists at this price b) demand is weak at this price point c) price has no effect on demand d) they should open the business immediately anyway

Explanation:

1. A long line outside a shop indicates high interest, meaning strong demand for the product.
2. Lowering the price and having sales double shows that lower prices can increase demand.
3. A new competitor with lower - priced products can attract customers away, reducing demand for the original product.
4. Conducting a survey asking potential customers if they would pay for a service is a good way to test demand.
5. The Pumpkin Spice Latte selling well in the fall is due to seasonal trends influencing demand.
6. Bottled water is a product with consistent high demand regardless of season or trend.
7. Only 2 out of 30 students willing to pay for a milkshake at a certain price indicates weak demand at that price point.

Answer:

1. b) Demand is strong for the product
2. b) Lower prices can increase demand
3. a) A new competitor enters the market with lower prices
4. b) Conduct a survey asking students if they would pay for the service
5. a) Seasonal trends influence demand
6. b) Bottled water
7. b) Demand is weak at this price point