Pricing
A $100 item is discounted by 20%. What is the new price?
What is - Answer: $80
(20% of $100 = $20 → $100 − $20)
A business sells a product for more than it costs to make
What is - Profit
If there are many sellers but few buyers, what usually happens to prices?
What is - Prices usually fall
When many businesses sell similar products, what usually happens to prices?
What is - Prices usually decrease
Reasons why a business might increase prices
What is - Because demand is high and customers are willing to pay more
(Also acceptable: limited supply, maximising profit)
A business has high sales but still loses money. Give one possible reason.
What is - Costs are too high
(Also acceptable: high rent, wages, overheads, debt, poor cash flow)
Why might concert or event tickets increase in price closer to the event date?
What is - Demand increases as the event approaches / supply is limited (Scarcity + urgency)
Why might a business choose to sell a product for less than its competitors?
What is - To attract customers or gain market share
(Also acceptable: promotion, new business, clearing stock)