Answer to Question #187787 in Economics for emily

Question

Come up with a new technology/product, describe it, answer the questions.

• Describe your new technology here:-
• 1. What other companies would be competitors for your product? How would they effect price?

• 2. Your product is efficient and always sells out, what would be a drawback to this?

• 3. Are there any seasonal events you could use or plan around for your product?

• 4. The government sets a price limit on your product, how that affect you as a business?

Answer 1

For example, your new technology is a new non-conventional source of electricity.

1. The other companies that would be competitors for your product are other non-conventional and conventional energy producers (solar, wind, hydro, waste etc). The existence of more competitors will decrease the price.

2. If your product is efficient and always sells out, then your profits will increase, and your competitor's profits will decrease.

3. There may be any seasonal events you could use or plan around for your product, because more electricity is needed in winter for heating and lighting.

4. If the government sets a price limit on your product, then it will negatively affect you as a business.