Inflation raises a bakery's ingredient and energy costs while customers' incomes rise more slowly. Which effect is most likely?
Profit must increase because every price in the economy, including the bakery's selling price, rises
Demand must remain unchanged because bread is a product
Profit may be squeezed if costs rise and customers resist higher prices
The bakery becomes protected from competitors by law
37 exam-style questions on Edexcel GCSE Business 1.5 Understanding external influences on business, covering 1.5.1a Business stakeholders and their objectives, 1.5.1b How stakeholders and businesses affect each other, 1.5.1c Conflicts between stakeholder groups, 1.5.2a Types of technology used by business, 1.5.2b How technology influences business activity, 1.5.3a Principles of consumer law, 1.5.3b Principles of employment law, 1.5.3c The cost impact of legislation, 1.5.3d Consequences of meeting legal obligations, 1.5.4 The economy and business, and 1.5.5 External influences. Each one has a worked solution and a mark scheme showing where the marks go.