Question detail

SolarSprout serves online shoppers while training staff; the case evidence includes customer retention of ?10,090, sales of 490 units, and a 35% change in costs or demand. Which option best applies Explain the basic relationship between price and demand?

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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 break-even and 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

Choose this response because Use demand to judge capacity utilisation, owners impact, and the business objective in Price. The case evidence gives ?11,590, 490 units, and 35%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse break-even and 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..

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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?