Falling levels of consumer income have caused a car dealership to experience a significant reduction in retail sales - OCR - GCSE Business - Question 15 - 2019 - Paper 1

During a period of falling consumer income, consumers are likely to become more price-sensitive. Therefore, the most effective strategy for the car dealership to increase sales is to offer price reductions. This action can attract more buyers who are looking for affordable options, thus helping to mitigate the impact of reduced retail sales.