Topic Test

Question 18 • FowU - Financial Math - B

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 use that information to decide what products or services to offer. They have an incentive to respond to consumer preferences because customers provide the revenue and profits that keep the business operating. This matches the choice about tracking buying trends and catering to consumers’ desires.

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