09 Analyse one way in which the economic problem affects a small coffee shop owner.

[Sir Afzal Shad]

09 Analyse one way in which the economic problem affects a small coffee shop owner.
Hint: KN: Limited resources force choices > APP: Limited money to buy a new coffee machine or a new oven > AN: Must choose which one will increase profit most.

Possible Structure - 3 Marker
[KN] >> [APP] >> [AN]

[hassanalizafar]

[KN]The economic problem means limited resources force businesses to make choices.
AAP]For example, a small coffee shop owner may only have enough money to buy either a new coffee machine or a new oven.
[AN]Choosing the coffee machine improves drink quality which attracts more customers which raises sales revenue.Overall, the owner must choose whichever option is likely to increase profit the most, showing how scarcity creates opportunity cost.

[shamaim shakeel]

[KN] The economic problem means limited resources force businesses to make choices about how to use them.
[AAP] For example, a small coffee shop owner may have to choose between buying a new coffee machine or hiring an extra worker. If the owner hires a worker, service will be faster.
[AN+] These speeds up the process of serving drinks, attracts more customers to the shop, and increases sales and profit margins in the short run.

[Muaz Aamir]

KN: The economic problem means there are limited resources but unlimited wants.
AP: For example, a coffee shop owner may not have enough money to hire many staff.
AN: This means the shop might not serve customers quickly during busy hours.
AN+: As a result, some customers could get frustrated and leave this reduces daily revenue and in the long run, it makes it harder for the shop to compete with bigger chains.

[Uqbah hadeed kayani]

[kn]limited resources may force the owner to make tough choices [app] for example the owner only has enough money to either buy a new coffee machine or a new oven [an] this makes the owner choose what would increase his revenue more as he only wants whats best for the business thus making him have to think this entire thing thoroughly considering both the pros and cons of each option

[Abdullah Mohsin]

[KN]Limited funds force choices
[APP]The owner may not be able to afford both a new espresso machine and more staff meaning they must decide which option brings greater benefit to the business. This creates an opportunity cost as choosing to buy the machine might improve efficiency but means missing out on the potential benefits of better customer service from hiring staff.
[AN]If the owner chooses the espresso machine, efficiency may improve in the short run but the lack of extra staff could lead to slower service during busy hours causing frustration among customers. This may reduce customer satisfaction and loyalty, leading to fewer repeat visits which is important for a small business.

[Aarib Saad]

(KN)The economic problem problem refers to scarcity which means that there is a lack of efficient resources to satisfy everyone's need and wants.
(APP)For instance, a small coffee shop owner decides to launch a new more stronger Coffee which will require a higher amount of coffee beans to produce, however due to a lack of growth of coffee beans, coffee will be expensive for the small shop owner to afford.
(AN+)Thus, this means that the owner of the business will be unable to attract a higher amount of customers, leading a decrease in sales revenue, making it difficult for the business to cover costs since it is already small, in turn making survival more difficult.

[Shaliza khawaja]

(KN) If the economy is facing inflation the general prices of goods might rise,
(APP) this would affect the coffee shop in a way that either the owner increase its profits or accept a lower one
(AN) As inflation also affects the customers they might cut back spending on the coffee shop leading to less sales for the owner eventually lowering profits, this would make their survival difficult in the business. And if in the long run the sales do not increase, the business might potentially go out of business.

[Subhan Zafar]

{KN}Economic problem means the limited resources business vulnerable to make a instant decision.
{APP}for instace the owner of coffee shop chosses to buy a additional coffee machime or upgrade the ambiance of the cafe.
{AN}the coffee shol owner may chosee to upgrade its coffee machines as it would make the coffee making process easier and quiker but the owner should chose the way which make its sales higher which leads to inc it revenue that the owner could use to expands its operation.

[abdurrehman waseem]

KN:The economy problem means unlimited wants but limited resources
APP:For example, the owner has to make a choice between a new coffee machine or a new oven
AN: The owner must decide which will increase profit,create brand image and increase sales

[Abdul Hadi]

KN: Economic problem means to not being able to fulfill all the wants due to lack of resouces.
APP: For example a coffee shop owner might want to buy a new coffee machine and improve the ambiance of the shop.
AN: The coffee shop owner may choose to improve the ambiance due to economic problem and doing such will allow the shop to attract more customers, allowing it to charge higher prices, earning a higher profit and allowing it to difrentiate itself from other coffee shops.

[Fatima ibtehaj]

[KN]Lack of machinery like a coffee maker.
[APP]Since the coffee shop is already small there if they cant purchase a better machine this may lead towards customers shifting to competitors.
[AN]This can lead towards a competitive disadvantage hence decreasing potential customers leading towards less sales/revenue.

[Hajra]

[KN] The economic problem is that resources are scarce but wants are unlimited. [AP] A small coffee shop owner may not have enough money or space to buy every type of coffee machine or stock every flavor customer might want. [AN] This affects them because they must make choices about how to use their limited resources for example, choosing cheaper equipment or focusing on the most popular flavors. This means some customer wants to go unmet, but it helps the owner avoid waste and stay profitable.

[areeshasaber]

[kn] The economic problem means resources are limited, so businesses cannot have everything they want.
[app] A small coffee shop owner may have limited money and must decide whether to buy a new coffee machine or a new oven.
[an+] The owner must choose the option that will increase profit the most, limit the variety of products, and delay investing in marketing.

[Abdullah Altaf]

[KN] The basic economic problem is scarcity meaning limited resources.
[APP] For instance a car company wants to launch a SUV and Sedan however due to limited resources (funds) the business has to decide one hence if he decides to launch a SUV then customers who like sedan would buy from competitor.
[AN] Resulting in less sales and profit as well as high competition due to which business may need to lower prices to survive.