Q1_Understanding the Market Quiz

What is the market area in computer system servicing?

• A place where products are manufactured

• A geographic zone where demand and supply are expressed

• A location for selling only software

• A zone with no competition

What does market threshold refer to?

• The average price of goods in the market

• The total amount of goods available for purchase

• The maximum distance customers are willing to travel

• The minimum demand necessary to support an economic activity

Which of the following factors influences demand?

• Profit

• Market coverage

• Utility

• Competition

What is the definition of supply?

• The total amount of goods available for purchase

• The number of competitors in the market

• The maximum distance customers will travel

• The minimum price consumers are willing to pay

Which type of competitor offers the same services as you?

• Direct competitor

• Phantom competitor

• Replacement competitor

• Indirect competitor

What is an indirect competitor?

• A business that only sells products

• A business that has no relation to your services

• A business that serves the same customer needs

• A business that offers the same products

What is one way to attract more customers?

• Limit the number of products available

• Expand the range of services offered

• Reduce the quality of services

• Increase prices significantly

What does inflation do to consumer purchasing power?

• Increases it

• Decreases it

• Has no effect

• Makes it stable

Which of the following is NOT a factor influencing supply?

• Profit

• Competition

• Utility

• Market coverage

What is the expected learning outcome regarding demand and supply?

• To define and explain demand and supply

• To memorize definitions

• To ignore market trends

• To focus only on supply