A café spends £2 extra on ingredients and redesigns each meal so customers are willing to pay £5 more. Which conclusion is correct?
Value falls by £3 because the café has increased its costs
No value is added because design cannot influence willingness to pay
The café adds £3 more value per meal if the other input costs are unchanged
Added value rises by £5 because the extra ingredient cost is irrelevant when the café sets its selling price
37 exam-style questions on Edexcel GCSE Business 1.1 Enterprise and entrepreneurship, covering 1.1.1a Why new business ideas come about: technology and consumers, 1.1.1b Why new business ideas come about: obsolescence, 1.1.1c How new business ideas come about, 1.1.2a Risk in business activity, 1.1.2b Reward in business activity, 1.1.3a The role and purpose of business activity, 1.1.3b Adding value, and 1.1.3c The role of entrepreneurship. Each one has a worked solution and a mark scheme showing where the marks go.