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Terry
0450-19-O-N-13-3c
Chan
TOPIC QUESTION - PAPER 1
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Chan
May 17, 2026 at 7:36:21 AM
May/June 2022
Version 3
3.0 Marketing
3.3 Marketing Mix
YOUR ANSWER
Problem 1: Competition
Explanation: Being in a competitive market, a reduction in price may cause competitors to reduce price as well. RGO may lose market share if they do so if price is elastic.
Problem 2: Lower profits
Explanation: Unless RGO reduces cost, they may have lower profits if they reduce price of their flight tickets
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