Question detail
CraftCrate serves repeat customers while raising prices; the case evidence includes unit contribution of ?8,203, sales of 343 units, and a 8% change in costs or demand. Which option best applies Discuss how demand for products and services may change as incomes fluctuate?
Try the question, check the answer, then read the explanation to understand the curriculum point.
At a glance
MCQ
Type
practice
Style
Topic
The economic climate on businesses
Question
- A. Use income, demand to judge cash inflow, employees impact, and the business objective in Employment and consumer spending.
- B. Give only a definition of The economic climate on businesses without using the case evidence.
- C. Treat gross and net profit as identical and ignore the effect on employees.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use income, demand to judge cash inflow, employees impact, and the business objective in Employment and consumer spending.
Explanation
This is the best-supported choice because Use income, demand to judge cash inflow, employees impact, and the business objective in Employment and consumer spending. The case evidence gives ?9,703, 343 units, and 8%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse gross and net profit, miss the employees, or ignore the business objective.
Common mistake
Employment and consumer spending common mistake 1
Giving a vague answer instead of directly addressing: Discuss how demand for products and services may change as incomes fluctuate..
Answer by clearly explaining how to discuss how demand for products and services may change as incomes fluctuate..
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