Which of the following is most likely to create new markets?

• A. Minimum wage laws
• B. Import tariffs
• C. Price controls
• D. Technological innovation

Answer: (D)

Verified step by step guidance

1. Understand the concept of 'creating new markets': This refers to the introduction of new goods, services, or technologies that did not previously exist, thereby generating demand and opportunities for trade and consumption.
2. Analyze the effects of minimum wage laws: These laws set a legal minimum price for labor, which can affect employment and wages but do not directly create new products or markets.
3. Consider import tariffs: Tariffs are taxes on imported goods that protect domestic industries but typically do not lead to the creation of entirely new markets; they mainly influence existing market structures.
4. Examine price controls: Price ceilings or floors regulate prices to prevent them from rising too high or falling too low, impacting supply and demand but not generating new markets.
5. Recognize the role of technological innovation: New technologies can lead to the development of new products and services, opening up entirely new markets and opportunities for economic growth.