Question

................. affects market assessment.

• A. Micro-environment
• B. Production cost
• C. Demand
• D. None of these

Hint:

High market demand encourages production expansion, innovation, and competitive pricing strategies.

Answer 1

The Correct Option is C

Step 1: Understanding Market Assessment.
Market assessment refers to evaluating the factors that influence market trends, pricing, and business decisions.
Among these, demand plays a crucial role as it directly determines the level of sales, production, and pricing strategies.
Step 2: Role of Demand.
Demand determines how much of a product consumers are willing to buy at given prices.
A high level of demand leads to increased production and market growth, while low demand results in reduced business activity.
Step 3: Analysis of options.
- (1) Micro-environment: Includes multiple factors, not a single determinant.
- (2) Production cost: Affects profitability, not market assessment directly.
- (3) Demand: Correct — it has a direct and strong influence on market trends and assessments.
- (4) None of these: Incorrect — as demand directly affects the market.
Step 4: Conclusion.
Thus, Demand is the most significant factor affecting market assessment.