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Itzel hopes to become a successful entrepreneur. She intends to open a shop in Oaxaca, Mexico, selling handmade scented candles, and will apply for the help her government offers to people setting up new businesses. Her cousin Marisol has suggested that the two of them set the shop up together as a business partnership. Itzel believes a new business has to choose its pricing method carefully, and she already has some ideas for raising the added value of her candles. She is unsure what an economic boom would mean for the shop.
Explain two methods of setting prices that could be used by a business that is just starting. Which of the two is likely to be the best for it to use? Justify your answer.
[6 marks]
Marked point by point against the mark scheme.
Modelled on Cambridge 0450 · May/Jun 2025 · Paper 11 · Q1(e)