Question detail
Northline Gym serves commuters while opening a second outlet; the case evidence includes net profit margin of ?9,650, sales of 325 units, and a 25% change in costs or demand. Which option best applies Explain the basic relationship between price and demand?
Try the question, check the answer, then read the explanation to understand the curriculum point.
At a glance
MCQ
Type
practice
Style
Topic
The elements of the marketing mix: price, product, promotion and place
Question
- A. Use demand to judge capacity utilisation, owners impact, and the business objective in Price.
- B. Give only a definition of The elements of the marketing mix: price, product, promotion and place without using the case evidence.
- C. Treat gross and net profit as identical and ignore the effect on owners.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use demand to judge capacity utilisation, owners impact, and the business objective in Price.
Explanation
This option works because Use demand to judge capacity utilisation, owners impact, and the business objective in Price. The case evidence gives ?11,150, 325 units, and 25%, 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 owners, or ignore the business objective.
Common mistake
Price common mistake 1
Giving a vague answer instead of directly addressing: Explain the basic relationship between price and demand..
Answer by clearly explaining how to explain the basic relationship between price and demand..
Related flashcards
Flashcard 1 of 5
Related practice questions
Question 1 of 5
Choose an answer, get feedback, then move sideways through the set.