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Explain any… (Class 12 Business Studies SQP 2024-25, Q34B)

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Business StudiesCBSE Class 12 · Sample paper, session 2024-25 · 6 marks · Long answer

CBSE Class 12 Business Studies sample paper 2024-25: question 34(B)

From the official CBSE sample question paper for 2024-25, section D, question 34(B), for 6 marks. Try it first; the hints and our step-by-step solution are below.

Q34(B) · 6 marks · Long answerMarketing

Explain any four factors affecting determination of the price of a product or service.

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2024-25.

Hints

Open one hint at a time and try again before the next.

Hint 1

Which factor sets the minimum price and which the maximum?

Hint 2

Who can cap the price of an essential product?

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. Product cost: The cost of producing, distributing and selling sets the floor price; in the long run all costs must be covered.

    1½ marks

  2. Utility and demand: Utility and intensity of demand set the upper limit that buyers will pay.

    1½ marks

  3. Extent of competition: Less competition lets the price reach the upper limit; free competition pushes it to the lowest level.

    1½ marks

  4. Government and legal regulations: Government may declare a product essential and regulate its price to protect the public. (Also: pricing objectives, marketing methods used.)

    1½ marks

Answer: Product cost, utility and demand, extent of competition and government regulation (also pricing objectives and marketing methods).

Where the marks are

  • Any four factors: ½ heading + 1 explanation each

Revise the chapter

Practise this chapterBoard-style questions from Marketing, one at a time, marked against the answer key and marking points.Back to the full paperSample paper 2024-25: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.