Chaz has an idea for a service business. it has worked well in other markets, and chaz sees

no reason why it should not work locally. the service involves renting dvds about colleges

and universities to high school students. the colleges chaz has contacted are all for it, and

the students he has talked to are excited about the idea as well. however, the three banks

from which he has tried to borrow money to set up his business are skeptical. they have all

turned him down for a loan.

what entrepreneurial characteristic should kick in here if chaz's business is going to

become a reality? why is that characteristic so important in this situation? why is it impor-

tant to entrepreneurs in general?

answer; marketing resource management;

answer; private store;

answer; microeconomics;

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.