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Adanna
0450-22-M-J-11-2c
Fiyin
TOPIC QUESTION - PAPER 1
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Fiyin
April 18, 2025 at 2:07:24 PM
May/June 2022
Version 3
6.0 External Influences on Business Activity
6.1 Economic Issues
YOUR ANSWER
Way 1: Inflation may result on target customers real incomes dropping, meaning they can no longer afford the prices of beds. This reduces demand and causes a drop in sales.
Way 2: Inflation may also cause cost of production to increase as raw materials for producing beds may also increase. This means less profit for the business
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