Consumer Rights

Question 4 • (Pizzella)WCA 6180 Personal Finance 1 - Part 1

How do the choices consumers make impact business decisions?

Answer

Businesses are run by consumers, so the choices those consumers make will find their way into business decisions.

Businesses can track the trends of what consumers are and are not buying, and will attempt to cater to the desires of those who provide them with profits.

The government mandates that businesses respond promptly to the preferences of the market.

Businesses, like consumers, tend to follow fads and trends, so setting trends can cause businesses to follow along.

Explanation

Businesses observe what consumers are buying and not buying, then use those trends to decide what to produce and sell. Since businesses rely on sales for profit, they try to meet consumer demand. Choice B describes this relationship; the government does not generally mandate that businesses follow consumer preferences.

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