Question detail
GreenGlow serves price-sensitive customers while using retained profit; the case evidence includes break-even output of ?9,619, sales of 739 units, and a 16% 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 break-even output, employees 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 employees.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use demand to judge break-even output, employees impact, and the business objective in Price.
Explanation
This answer fits the scenario because Use demand to judge break-even output, employees impact, and the business objective in Price. The case evidence gives ?11,119, 739 units, and 16%, 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 employees, 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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