Question

How do the choices consumers make impact business decisions?
a.
Businesses are run by consumers, so the choices those consumers make will find their way into business decisions.
b.
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.
c.
The government mandates that businesses respond promptly to the preferences of the market.
d.
Businesses, like consumers, tend to follow fads and trends, so setting trends can cause businesses to follow along.

Answer 1

Best answer: b.

Explanation: Businesses watch what consumers buy (and don’t buy) and use that information — sales data, market research, trends — to decide what to produce, how much, how to price and market it. Option d is partially true (firms often follow fads and trends), but a is misleading and c is incorrect.