Which example most accurately shows consumer choices impacting business decisions ?A) A train manufacturer depends on steel supp
lied by a company that is in another state. B) Consumers decide to be healthier, so a tobacco growing company starts growing vegetables. C) Business decide to buy cheaper supplies from overseas companies. D) Consumers only buy cheap products, so that encourages companies to put their goods on sale.
Answer: B) Consumers decide to be healthier, so a tobacco growing company starts growing vegetables.
Explanation:
The example that most accurately shows consumer choices impacting business decisions is option B"Consumers decide to be healthier, so a tobacco growing company starts growing vegetables".
Consumer choice simply refers to the decisions which are taken by consumers towards their purchase of products. Our decisions as consumers have an effect on the decisions or producers as well. For example an increase in demand can lead to a supplier producing more if a particular good.
In this case, when consumers decide to be healthier, the tobacco growing company will be negatively affected as there'll be a reduction in the demand for its products and may starts growing vegetables which is healthy.
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