Business 9609 · AS & A Level · External influences on business activity

External influences on business activity — practice question

(a)[2]

Look at line 29. Calculate the forecast change in sales for pay as you go fitness classes if average incomes decrease by 6%.

(b)[2]

Look at lines 24–28. Calculate the promotional elasticity of demand for annual membership of AFF.

(c)[12]

Evaluate which part of AFF’s coordinated marketing strategy is most significant.

Worked solution & mark scheme

This 16-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Apply the income elasticity of demand formula, or state the relationship: YED = % change in quantity demanded / % change in income (or 2.5 = % change Qd / -6).” …

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