Assertion: Market assessment should take into account future supplies from possible entrants in the field.
Reasoning: The demand assessment will be based on the size of market being targeted.
Reasoning: The demand assessment will be based on the size of market being targeted.
Answer & explanation
Correct answer: option 2
Supply and nature of competition: While assessing market, supply position is also studied by entrepreneurs. By supply position what is meant is the complete picture of quantities of the product made available in the market by all the existing players. It should take into account future supplies from possible entrants in the field.