Question detail
BrightBake serves small retailers while taking a loan; the case evidence includes capacity utilisation of ?8,532, sales of 292 units, and a 17% 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 supplier lead time, customers 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 stakeholders and shareholders as identical and ignore the effect on customers.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use demand to judge supplier lead time, customers impact, and the business objective in Price.
Explanation
Choose this response because Use demand to judge supplier lead time, customers impact, and the business objective in Price. The case evidence gives ?10,032, 292 units, and 17%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse stakeholders and shareholders, miss the customers, 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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