The elasticity of demand for a good is –0.75. A 4% increase in price will cause a:. A) 3% iecrease in quantity demanded. B) 5.33% decrease in quantity demanded. C) 5.33% increase in quantity demanded. D) 0.19% decrease in quantity demanded.

Why is it easier for new entrants to get involved in radical innovations when compared to incumbent firms? a. unlike incumbent firms, new entrants do not have to face the high entry barriers, initially. b. new entrants are embedded in an innovation ecosystem, while incumbent firms are not. c. unlike incumbent firms, new entrants do not have formal organizational structures and processes. d. incumbent firms do not have the advantages of network effects that new entrants have.