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Describe… (Class 12 Business Studies SQP 2026-27, Q31A)

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Business StudiesCBSE Class 12 · Sample paper, session 2026-27 · 6 marks · Long answer

CBSE Class 12 Business Studies sample paper 2026-27: question 31(A)

From the official CBSE sample question paper for 2026-27, section A, question 31(A), for 6 marks. Try it first; the hints and our step-by-step solution are below.

Q31(A) · 6 marks · Long answerMarketing

Describe Product cost, Utility and demand and Marketing Methods used as factors determining the price of a product.

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2026-27.

Hints

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

Hint 1

Which factor sets the minimum price?

Hint 2

Which factor sets the maximum price?

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. Firms try to cover all costs and earn a margin, at least in the long run, though a new product may at first be priced below cost.

    2 marks

  2. Utility and demand: The utility to the buyer and the intensity of demand set the upper limit of price; buyers pay up to the point where utility equals the price sacrificed, and usually buy more at lower prices.

    2 marks

  3. Marketing methods used: Other marketing elements such as distribution, salesmen, advertising, sales promotion, packaging, product differentiation, credit and customer service affect the price; uniqueness in any of them gives freedom in pricing.

    2 marks

Answer: Product cost sets the lower limit, utility and demand the upper limit, and other marketing methods influence where the price is fixed.

Where the marks are

  • Each factor: ½ heading + 1½ explanation

Revise the chapter

  • Chapter: Marketing (notes, formulas, where marks are lost and every past question)
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 2026-27: 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.