Question

In this lesson, you started by reviewing customer demand before choosing a business. What microeconomic factors point to the fact that your business should be successful? Be sure to provide evidence for your claim.

Answer 1

The microeconomic factors that are important to consider in business is competition, the supply and demand, elasticity of the goods and similar variables. Depending on the business, each has factor has a unique impact which  can either help or ruin the business.

Answer 2

It is clear that consumers in the area are able and willing to purchase custom outdoor shoe equipment. Data from surveys and market research demonstrate that the standard of living is high enough for my product. These data also demonstrate that new coffee shops are not in demand in my community. A new coffee shop may be successful, but it would be a bigger risk considering the capital need and the amount of competition already present.