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Question 3: Business Concept Application

Ridgeline Cycles: sizing up the e-bike market

  • Units 1 and 2
  • 3 points
  • About 13 minutes

You can use a calculator on this question, just like on exam day.

A short scenario about a business gathering evidence for its plans: you describe how it did its research, describe what the data show, and explain how the business could use that finding to reach a goal. On the exam: Question 3 of 4, Section IIB (Questions 2–4 share 65 minutes); suggested time 12–13 minutes, 5% of the score. Assesses Skill Category 1. Section II has 4 free-response questions in 90 minutes (40% of the score). The exam is fully digital in Bluebook, and only a 4-function calculator is allowed (handheld or the built-in Desmos 4-function calculator).

The question and its sources

Respond to parts A, B, and C.

Ridgeline Cycles

Ridgeline Cycles makes mountain and road bikes and sells them through bike shops in its region. It wants to launch its first electric bike (e-bike) and gain market share in the region's e-bike market.

Before designing the bike, Ridgeline's marketing team gathered information from a bicycle industry association's annual reports, a city transportation department report and rival companies' websites. The industry reports gave regional e-bike sales (Table 1). The rivals' websites gave each rival's price and battery range, and the industry reports gave market shares (Table 2).

The city transportation report says the region's largest city plans to add 40 miles of protected bike lanes over the next three years.

Source: Hypothetical scenario written for this practice question

Table 1. E-bikes sold in Ridgeline's region

YearE-bikes sold
202218,000
202321,500
202426,000
202531,200

Source: Hypothetical data written for this practice question

Table 2. Leading e-bikes in the region, 2025

BrandPriceBattery range (miles)Market share (by units sold)
Voltway$1,2993041%
UrbanGlide$1,7994527%
Crestline$2,4996022%
All othersVariesVaries10%

Source: Hypothetical data written for this practice question

Suggested time: 13 minutes

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Part (A)

1 point

Describe the research method Ridgeline used to gather the information in the scenario.

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Part (B)

1 point

Describe a finding revealed by the research.

0 / 2,500 characters

Part (C)

1 point

Explain how Ridgeline could use a finding from the research to achieve its goal of gaining market share in the regional e-bike market.

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