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This allows managers to identify implications, draw conclusions and use the research to make informed business decisions."},{"text":"Recording what the evidence means for business decisions.","correct":false,"explanation":"Recording preserves research findings but does not establish their implications. The extra step is interpreting the evidence so managers understand what it means for business decisions."},{"text":"Collecting what the evidence means for business decisions.","correct":false,"explanation":"Collecting evidence is part of market research itself, not the additional analytical stage. Market analysis requires interpreting the evidence to guide business decisions."},{"text":"Presenting what the evidence means for business decisions.","correct":false,"explanation":"Presenting evidence communicates findings but does not necessarily explain their significance. The research becomes market analysis when the business interprets what the evidence means for decisions."}]},{"id":"2fd9f7f4-5f0d-4d9a-b1f0-620dcc4c1734","cardType":"cloze","points":null,"front":"[ ] is numerical; [ ] is non-numerical.","back":"Quantitative data is numerical; qualitative data is non-numerical.","mcqOptions":[{"text":"Quantitative data is numerical; qualitative data is non-numerical.","correct":true,"explanation":"Quantitative data consists of measurable numbers, such as sales figures or percentages. Qualitative data consists of descriptions, opinions and explanations that are not primarily numerical."},{"text":"Qualitative data is numerical; quantitative data is non-numerical.","correct":false,"explanation":"This reverses the two categories. Quantitative data is numerical and measurable, whereas qualitative data captures non-numerical views, motives and descriptions."},{"text":"Primary data is numerical; secondary data is non-numerical.","correct":false,"explanation":"Primary and secondary describe where data comes from, not whether it is numerical. Quantitative data is numerical, while qualitative data is non-numerical."},{"text":"Qualitative data is numerical; secondary data is non-numerical.","correct":false,"explanation":"This mixes classification by data type with classification by source. Quantitative data is numerical, while qualitative data is non-numerical, regardless of how either was obtained."}]},{"id":"ec6eb47c-2b1f-45c4-af57-8fcd1448bbdb","cardType":"basic","points":1,"front":"What does quantitative data help measure in market analysis?","back":"The size of a problem or opportunity.","mcqOptions":[{"text":"The size of a problem or opportunity.","correct":true,"explanation":"Quantitative data uses numerical evidence to show the scale or size of an issue, such as how many customers are affected or how large a market opportunity is."},{"text":"The cause of a problem or opportunity.","correct":false,"explanation":"Causes usually require qualitative evidence about motives, experiences and explanations. Quantitative data primarily measures the size of a problem or opportunity using numerical results."},{"text":"The meaning of a problem or opportunity.","correct":false,"explanation":"Understanding meaning relies mainly on qualitative interpretation rather than numerical measurement. Quantitative data is used to establish the size of a problem or opportunity."},{"text":"The origin of a problem or opportunity.","correct":false,"explanation":"Identifying an origin requires investigation into why and how the situation developed. Quantitative data mainly measures the size of the problem or opportunity numerically."}]},{"id":"d0638d87-23d6-4ace-b02c-7f613444b354","cardType":"basic","points":1,"front":"What does qualitative data help explain in market analysis?","back":"The reasons behind customer behaviour.","mcqOptions":[{"text":"The reasons behind customer behaviour.","correct":true,"explanation":"Qualitative data captures opinions, motives and attitudes, helping a business understand why customers behave in particular ways rather than simply measuring how many behave that way."},{"text":"The numbers behind customer behaviour.","correct":false,"explanation":"Numerical patterns are measured by quantitative data. Qualitative data instead explains the reasons behind customer behaviour by exploring motives, opinions and experiences."},{"text":"The volume behind customer behaviour.","correct":false,"explanation":"Volume concerns how much behaviour occurs and is therefore quantitative. Qualitative data helps explain the reasons behind customer behaviour rather than its numerical scale."},{"text":"The frequency behind customer behaviour.","correct":false,"explanation":"Frequency measures how often something happens, which requires quantitative data. Qualitative data investigates the reasons behind customer behaviour through non-numerical evidence."}]},{"id":"0a80b66d-7b45-4607-bee8-11e5532d7330","cardType":"basic","points":1,"front":"When judging market position, what is the business compared with?","back":"Its competitors.","mcqOptions":[{"text":"Its competitors.","correct":true,"explanation":"Market position describes where a business stands relative to rival firms. Comparing factors such as market share, price, quality and reputation with competitors reveals that position."},{"text":"Its customers.","correct":false,"explanation":"Customers provide demand and feedback, but they are not the benchmark for relative market position. A business judges its position by comparing itself with its competitors."},{"text":"Its suppliers.","correct":false,"explanation":"Suppliers affect costs and operations but do not determine a firm’s relative standing in its market. Market position is assessed by comparison with competitors."},{"text":"Its employees.","correct":false,"explanation":"Employees influence performance, but comparing the business with its workforce does not show relative market standing. The relevant comparison is with its competitors."}]},{"id":"1a29eeab-f251-47f5-b714-d01a498d5667","cardType":"basic","points":1,"front":"Which market-position indicator shows the proportion of total market sales held by a business?","back":"Market share.","mcqOptions":[{"text":"Market share.","correct":true,"explanation":"Market share is the percentage or proportion of total market sales made by one business. It indicates the firm’s relative sales position within the market."},{"text":"Sales volume.","correct":false,"explanation":"Sales volume measures the number of units a business sells, not its proportion of total market sales. That proportion is measured by market share."},{"text":"Market growth.","correct":false,"explanation":"Market growth measures how the size of the whole market changes over time. Market share measures the proportion of total sales held by one business."},{"text":"Profit margin.","correct":false,"explanation":"Profit margin shows profit as a proportion of sales revenue, not the firm’s share of market sales. The relevant market-position indicator is market share."}]},{"id":"7b04a589-43f8-43a0-8827-91e1c13d9550","cardType":"cloze","points":null,"front":"Triangulation means checking evidence from [ ] before reaching a [ ].","back":"Triangulation means checking evidence from several sources before reaching a judgement.","mcqOptions":[{"text":"Triangulation means checking evidence from several sources before reaching a judgement.","correct":true,"explanation":"Triangulation compares evidence from several sources to see whether findings support one another. This improves reliability and gives the business a stronger basis for reaching a judgement."},{"text":"Triangulation means checking evidence from a single source before reaching a judgement.","correct":false,"explanation":"Relying on one source provides no cross-check and may preserve its bias or error. Triangulation requires evidence from several sources before reaching a judgement."},{"text":"Triangulation means checking evidence from several sources before reaching a calculation.","correct":false,"explanation":"Triangulation supports an evaluated conclusion rather than merely producing a numerical result. It checks evidence from several sources before reaching a judgement."},{"text":"Triangulation means checking evidence from a single source before reaching a calculation.","correct":false,"explanation":"This confuses triangulation with using one dataset for a calculation. Triangulation checks evidence from several sources to improve reliability before reaching a judgement."}]},{"id":"d6dc42be-7d80-4bce-a383-fa8ad3b328f5","cardType":"cloze","points":null,"front":"A future customer requirement is how needs may change due to [ ]; a trend is a [ ] in data or behaviour.","back":"A future customer requirement is how needs may change due to trends; a trend is a long-term pattern in data or behaviour.","mcqOptions":[{"text":"A future customer requirement is how needs may change due to trends; a trend is a long-term pattern in data or behaviour.","correct":true,"explanation":"Trends reveal sustained changes that may alter what customers need in future. A trend is therefore a long-term pattern in evidence or behaviour, not a brief fluctuation."},{"text":"A future customer requirement is how needs may change due to accounting conventions; a trend is a long-term pattern in data or behaviour.","correct":false,"explanation":"Accounting conventions govern financial reporting rather than changes in customer needs. Future customer requirements may change due to trends, which are long-term patterns in data or behaviour."},{"text":"A future customer requirement is how needs may change due to trends; a trend is a short-term fluctuation in data or behaviour.","correct":false,"explanation":"A short-term fluctuation may be temporary and does not establish a sustained direction. A trend is a long-term pattern that can indicate how customer requirements may change."},{"text":"A future customer requirement is how needs may change due to past invoices; a trend is a random variation in data or behaviour.","correct":false,"explanation":"Past invoices record transactions, while random variation lacks a sustained pattern. Customer requirements may change due to trends, defined as long-term patterns in data or behaviour."}]},{"id":"e893566d-2ab0-4d62-ae01-72217b1a3a98","cardType":"cloze","points":null,"front":"The PED formula is PED = [ ] ÷ [ ].","back":"The PED formula is PED = % change in quantity demanded ÷ % change in price.","mcqOptions":[{"text":"The PED formula is PED = % change in quantity demanded ÷ % change in price.","correct":true,"explanation":"PED measures how responsive quantity demanded is to a change in price, so the percentage change in quantity demanded is divided by the percentage change in price."},{"text":"The PED formula is PED = % change in price ÷ % change in quantity demanded.","correct":false,"explanation":"This reverses the numerator and denominator. PED measures the response of quantity demanded, so % change in quantity demanded must be divided by % change in price."},{"text":"The PED formula is PED = % change in quantity supplied ÷ % change in price.","correct":false,"explanation":"Using quantity supplied gives price elasticity of supply, not price elasticity of demand. PED uses % change in quantity demanded divided by % change in price."},{"text":"The PED formula is PED = % change in quantity demanded ÷ % change in income.","correct":false,"explanation":"Dividing by a change in income calculates income elasticity of demand. PED instead compares the % change in quantity demanded with the % change in price."}]},{"id":"b00f2dad-3bc3-4c3c-b53a-09282a295ec7","cardType":"basic","points":2,"front":"Why does PED usually have a minus sign?","back":"Price rises usually make quantity demanded fall.","mcqOptions":[{"text":"Price rises usually make quantity demanded fall.","correct":true,"explanation":"The law of demand gives an inverse relationship between price and quantity demanded. Their percentage changes therefore usually have opposite signs, making PED negative."},{"text":"Price rises usually make quantity demanded rise.","correct":false,"explanation":"This assumes a positive relationship between price and demand, contrary to the usual law of demand. Price rises normally make quantity demanded fall, producing negative PED."},{"text":"Price rises usually make quantity supplied fall.","correct":false,"explanation":"This confuses demand with supply and also reverses the usual supply relationship. PED is negative because a price rise normally makes quantity demanded fall."},{"text":"Price falls usually make quantity demanded fall.","correct":false,"explanation":"This reverses the usual law of demand. A price fall normally increases quantity demanded, while a price rise reduces it, giving PED its usual minus sign."}]},{"id":"1f7384a5-2dea-41c2-a0fd-4ce1a1f4c28b","cardType":"basic","points":1,"front":"If PED is negative with magnitude less than 1, what is demand?","back":"Price inelastic.","mcqOptions":[{"text":"Price inelastic.","correct":true,"explanation":"When the magnitude of PED is below 1, quantity demanded changes by a smaller percentage than price. Demand is therefore classified as price inelastic."},{"text":"Price elastic.","correct":false,"explanation":"Price elastic demand has a PED magnitude greater than 1, meaning quantity demanded responds proportionately more than price. A magnitude below 1 means price inelastic demand."},{"text":"Unitary elastic.","correct":false,"explanation":"Unitary elastic demand requires the magnitude of PED to equal exactly 1. If the magnitude is below 1, demand is price inelastic."},{"text":"Perfectly inelastic.","correct":false,"explanation":"Perfectly inelastic demand has PED equal to zero, with no change in quantity demanded. A negative PED magnitude between 0 and 1 is price inelastic."}]},{"id":"17887733-190a-4457-b317-f02bb441f586","cardType":"basic","points":1,"front":"If PED is negative with magnitude greater than 1, what is demand?","back":"Price elastic.","mcqOptions":[{"text":"Price elastic.","correct":true,"explanation":"A PED magnitude greater than 1 means quantity demanded changes by a larger percentage than price. Demand is therefore classified as price elastic."},{"text":"Price inelastic.","correct":false,"explanation":"Price inelastic demand has a PED magnitude below 1, as quantity demanded changes proportionately less than price. A magnitude above 1 means price elastic demand."},{"text":"Unitary elastic.","correct":false,"explanation":"Unitary elastic demand applies only when the magnitude of PED is exactly 1. A magnitude greater than 1 indicates price elastic demand."},{"text":"Perfectly elastic.","correct":false,"explanation":"Perfectly elastic demand has an infinite PED magnitude, where any price increase eliminates demand. An ordinary magnitude greater than 1 is classified as price elastic."}]},{"id":"ce027be9-b24c-417c-85e1-6bb2cc92f730","cardType":"basic","points":1,"front":"If PED has a magnitude exactly 1, what is demand?","back":"Unitary elastic.","mcqOptions":[{"text":"Unitary elastic.","correct":true,"explanation":"When PED has a magnitude of exactly 1, quantity demanded changes by the same percentage as price. This is known as unitary elastic demand."},{"text":"Price inelastic.","correct":false,"explanation":"Price inelastic demand requires a PED magnitude below 1, meaning quantity demanded changes proportionately less than price. A magnitude exactly equal to 1 is unitary elastic."},{"text":"Price elastic.","correct":false,"explanation":"Price elastic demand requires a PED magnitude greater than 1, meaning quantity demanded changes proportionately more than price. A magnitude of exactly 1 is unitary elastic."},{"text":"Perfectly elastic.","correct":false,"explanation":"Perfectly elastic demand has an infinite PED magnitude rather than a magnitude of 1. A PED magnitude exactly equal to 1 is unitary elastic."}]},{"id":"8e0782a0-8537-4341-828f-1f8d79d9633f","cardType":"basic","points":2,"front":"Calculate PED if price rises by 10% and quantity demanded falls by 5%.","back":"-0.5.","mcqOptions":[{"text":"-0.5.","correct":true,"explanation":"PED equals -5% divided by 10%, giving -0.5. The negative sign reflects the fall in quantity demanded when price rises."},{"text":"0.5.","correct":false,"explanation":"The magnitude is calculated correctly, but the sign ignores that quantity demanded fell by 5%. Dividing -5% by 10% gives PED of -0.5."},{"text":"-2.","correct":false,"explanation":"This results from reversing the PED calculation and dividing the price change by the quantity change. The correct calculation is -5% divided by 10%, giving -0.5."},{"text":"-0.05.","correct":false,"explanation":"This mixes decimal and percentage forms by dividing 0.05 by 10 rather than 0.10. Using consistent forms, -5% divided by 10% equals -0.5."}]},{"id":"6eee2fac-df78-404b-b705-ae7a51121464","cardType":"basic","points":2,"front":"For price inelastic demand, what usually happens to total revenue after a price rise?","back":"Total revenue usually rises.","mcqOptions":[{"text":"Total revenue usually rises.","correct":true,"explanation":"With price inelastic demand, the percentage fall in quantity demanded is smaller than the percentage price rise. The higher price therefore usually increases total revenue."},{"text":"Total revenue usually falls.","correct":false,"explanation":"This focuses only on the fall in sales volume. With inelastic demand, quantity demanded falls proportionately less than price rises, so total revenue usually rises."},{"text":"Total revenue usually stays constant.","correct":false,"explanation":"Constant total revenue is associated with unitary elastic demand, where the percentage changes are equal. With price inelastic demand, a price rise usually raises total revenue."},{"text":"Total revenue usually cannot be predicted.","correct":false,"explanation":"PED allows the direction of the total revenue change to be predicted, assuming other factors remain constant. With inelastic demand, a price rise usually raises total revenue."}]},{"id":"6d9e28b2-43ff-48cd-abee-b9551d25d259","cardType":"basic","points":2,"front":"For price elastic demand, what usually happens to total revenue after a price rise?","back":"Total revenue usually falls.","mcqOptions":[{"text":"Total revenue usually falls.","correct":true,"explanation":"With price elastic demand, the percentage fall in quantity demanded exceeds the percentage price rise. The loss of sales therefore usually causes total revenue to fall."},{"text":"Total revenue usually rises.","correct":false,"explanation":"This focuses only on the higher price. With elastic demand, quantity demanded falls by a larger percentage than price rises, so total revenue usually falls."},{"text":"Total revenue usually stays constant.","correct":false,"explanation":"Constant total revenue is associated with unitary elastic demand, where the percentage changes are equal. With price elastic demand, a price rise usually reduces total revenue."},{"text":"Total revenue usually cannot be predicted.","correct":false,"explanation":"PED predicts the direction of the revenue change when other factors remain constant. With elastic demand, the proportionately larger fall in sales makes total revenue fall."}]},{"id":"a22db5e0-a3d3-4072-8f4d-a75b9a9bee3b","cardType":"cloze","points":null,"front":"The YED formula is YED = [ ] ÷ [ ].","back":"The YED formula is YED = % change in quantity demanded ÷ % change in income.","mcqOptions":[{"text":"The YED formula is YED = % change in quantity demanded ÷ % change in income.","correct":true,"explanation":"YED measures how responsive quantity demanded is to income changes, so percentage change in quantity demanded is divided by percentage change in income."},{"text":"The YED formula is YED = % change in income ÷ % change in quantity demanded.","correct":false,"explanation":"This reverses the numerator and denominator. YED is calculated by dividing the percentage change in quantity demanded by the percentage change in income."},{"text":"The YED formula is YED = change in quantity demanded ÷ change in income.","correct":false,"explanation":"YED uses percentage changes rather than absolute changes, allowing responsiveness to be compared across different products and income levels."},{"text":"The YED formula is YED = % change in price ÷ % change in income.","correct":false,"explanation":"Price belongs in the PED formula. YED specifically measures the relationship between percentage changes in quantity demanded and income."}]},{"id":"8c463379-a39d-497b-b72b-f603b4178b7e","cardType":"basic","points":1,"front":"A product has positive YED. What type of good is it?","back":"A normal good.","mcqOptions":[{"text":"A normal good.","correct":true,"explanation":"A normal good has positive YED because demand increases as consumer income rises, assuming other factors remain unchanged."},{"text":"An inferior good.","correct":false,"explanation":"An inferior good has negative YED because demand tends to fall as income rises. Positive YED identifies a normal good."},{"text":"A Giffen good.","correct":false,"explanation":"A Giffen good is associated with an unusual price-demand relationship, not positive income elasticity. Positive YED indicates a normal good."},{"text":"A luxury good.","correct":false,"explanation":"Luxury goods are a type of normal good with YED greater than 1, but positive YED alone also includes necessities. The general answer is a normal good."}]},{"id":"d31ff7e7-bccc-457a-8e6c-0fb81f1fab0e","cardType":"basic","points":1,"front":"A product has negative YED. What type of good is it?","back":"An inferior good.","mcqOptions":[{"text":"An inferior good.","correct":true,"explanation":"An inferior good has negative YED because demand tends to decrease when consumer incomes rise, as consumers switch to preferred alternatives."},{"text":"A normal good.","correct":false,"explanation":"A normal good has positive YED because demand rises with income. Negative YED identifies an inferior good."},{"text":"A luxury good.","correct":false,"explanation":"A luxury good has positive YED greater than 1, meaning demand rises more than proportionately with income. Negative YED indicates an inferior good."},{"text":"A complementary good.","correct":false,"explanation":"Complementary goods are defined by their relationship with another product, usually through cross elasticity of demand. Negative YED describes an inferior good."}]},{"id":"c123ab05-e6a3-4420-8c31-1aff2daa055e","cardType":"basic","points":2,"front":"In YED, why is an inferior good not necessarily poor quality?","back":"Demand tends to increase when incomes fall.","mcqOptions":[{"text":"Demand tends to increase when incomes fall.","correct":true,"explanation":"Inferior describes the income-demand relationship, not product quality. Negative YED means demand tends to increase when incomes fall."},{"text":"Demand tends to increase when incomes rise.","correct":false,"explanation":"This describes a normal good and positive YED. An inferior good has negative YED, so demand tends to increase when incomes fall."},{"text":"Demand tends to fall when incomes fall.","correct":false,"explanation":"Demand falling when income falls indicates a normal good. For an inferior good, demand tends to increase when incomes fall."},{"text":"Demand tends to remain unchanged when incomes fall.","correct":false,"explanation":"Unchanged demand suggests zero YED rather than an inferior good. Negative YED means demand tends to increase when incomes fall."}]},{"id":"0298b3de-7189-4ac7-b346-7b23a0c2cb1a","cardType":"cloze","points":null,"front":"YED greater than 1 means demand is [ ]; YED between 0 and 1 means demand is [ ].","back":"YED greater than 1 means demand is income elastic; YED between 0 and 1 means demand is income inelastic.","mcqOptions":[{"text":"YED greater than 1 means demand is income elastic; YED between 0 and 1 means demand is income inelastic.","correct":true,"explanation":"When YED is greater than 1, demand changes more than proportionately to income. Between 0 and 1, demand changes less than proportionately."},{"text":"YED greater than 1 means demand is income inelastic; YED between 0 and 1 means demand is income elastic.","correct":false,"explanation":"These classifications are reversed. YED greater than 1 is income elastic, while a positive YED between 0 and 1 is income inelastic."},{"text":"YED greater than 1 means demand is income elastic; YED between 0 and 1 means demand is income elastic.","correct":false,"explanation":"The first classification is correct, but a YED between 0 and 1 indicates an inelastic response because demand changes less than proportionately to income."},{"text":"YED greater than 1 means demand is income inelastic; YED between 0 and 1 means demand is income inelastic.","correct":false,"explanation":"Only the second classification is correct. A YED greater than 1 means demand is income elastic because quantity demanded changes more than proportionately."}]},{"id":"2b61a5ca-5056-470b-9c6e-401f653a1644","cardType":"basic","points":2,"front":"Calculate YED if demand rises by 8% while income falls by 5%.","back":"-1.6.","mcqOptions":[{"text":"-1.6.","correct":true,"explanation":"YED equals percentage change in demand divided by percentage change in income: 8% ÷ -5% = -1.6. The negative sign shows an inferior good."},{"text":"1.6.","correct":false,"explanation":"This ignores the negative sign from the fall in income. Calculating 8% ÷ -5% gives -1.6, indicating negative income elasticity."},{"text":"-0.625.","correct":false,"explanation":"This divides 5 by 8, reversing the YED formula. The correct calculation is 8% ÷ -5% = -1.6."},{"text":"-13.","correct":false,"explanation":"This comes from subtracting the percentages rather than dividing them. YED requires 8% ÷ -5%, which equals -1.6."}]},{"id":"1b6794b9-8728-40e3-a42c-98b2d0d7b9f6","cardType":"cloze","points":null,"front":"Revenue = [ ] × [ ].","back":"Revenue = price per unit × quantity sold.","mcqOptions":[{"text":"Revenue = price per unit × quantity sold.","correct":true,"explanation":"Revenue is the total money received from sales, calculated by multiplying the price charged for each unit by the number of units sold."},{"text":"Revenue = price per unit × quantity produced.","correct":false,"explanation":"Quantity produced may differ from quantity sold because of unsold stock. Revenue is calculated using the price per unit multiplied by quantity sold."},{"text":"Revenue = profit per unit × quantity sold.","correct":false,"explanation":"This calculates total profit only if profit per unit is used, whereas revenue is calculated from price per unit multiplied by quantity sold."},{"text":"Revenue = price per unit ÷ quantity sold.","correct":false,"explanation":"Dividing by quantity sold gives an average value rather than total revenue. Revenue is found by multiplying price per unit by quantity sold."}]},{"id":"b7879f3e-ae36-4961-8a82-534e1060ac04","cardType":"basic","points":2,"front":"Why are PED and YED forecasts not perfect predictions?","back":"Other factors may change at the same time.","mcqOptions":[{"text":"Other factors may change at the same time.","correct":true,"explanation":"PED and YED isolate one relationship, but real markets contain several changing influences, such as advertising, tastes, prices of related goods and expectations."},{"text":"Consumers always respond immediately.","correct":false,"explanation":"Consumers may take time to adjust their purchases, so immediate responses are not guaranteed. Forecasts are imperfect because other factors may change simultaneously."},{"text":"Prices and incomes never change together.","correct":false,"explanation":"Prices and incomes can change at the same time, along with many other influences. This makes it difficult to attribute demand changes to one factor alone."},{"text":"Elasticity values are fixed for every market.","correct":false,"explanation":"Elasticity values can vary between markets and over time as consumer behaviour and market conditions change. Other factors may change alongside price or income."}]}]}],"examCountdown":{"examDate":"2027-05-13","paperLabel":"Component 1"},"heading":"Market analysis","title":"Market analysis Flashcards","topbar":{"backHref":"/a-level/business/eduqas/flashcards"},"topicSidebar":"$L37"}]}],"topicId":"4fb2468f-b657-5d41-8099-97d2443abc7f","walled":"$L38"}],"$L39","$L3a"]