Question

1. what happens when a product fails to generate a demand?
2. explain why the electric car or usfl failed the first time it was released.

• utility

1. list the 5 different types of utility.
2. how is the value of an item determined?
3. give an example of possession utility.
4. how do credit cards work?
5. give an example of place utility.
6. give an example of information utility.

Explanation:

1. When a product fails to generate demand, producers may face unsold inventory, reduced revenues, and may need to cut production or lower prices.
2. Electric cars initially failed due to high - cost, limited range, and lack of charging infrastructure. USFL may have failed due to poor market timing, high operating costs, and lack of fan interest.
3. The five types of utility are form utility, time utility, place utility, possession utility, and information utility.
4. The value of an item is determined by factors such as production cost, demand, scarcity, and perceived usefulness.
5. An example of possession utility is a car dealership offering financing options to make it easier for customers to own a car.
6. Credit cards work by allowing cardholders to borrow money from the card - issuing bank to make purchases. The cardholder is then required to pay back the borrowed amount, usually with interest, by a due date.
7. An example of place utility is a convenience store located near a college campus, making it convenient for students to buy snacks and other items.
8. An example of information utility is a website that provides detailed product reviews and comparisons, helping consumers make informed purchasing decisions.

Answer:

1. Producers face unsold inventory, reduced revenues, may cut production or lower prices.
2. Electric cars: high - cost, limited range, lack of charging infrastructure. USFL: poor market timing, high costs, lack of fan interest.
3. Form utility, time utility, place utility, possession utility, information utility.
4. Production cost, demand, scarcity, perceived usefulness.
5. Car dealership offering financing for car ownership.
6. Cardholders borrow from issuing bank for purchases, pay back with interest by due date.
7. Convenience store near college campus for student convenience.
8. Website with product reviews and comparisons for informed decisions.