Take the following as truth: If all goes well, retailers allocate space to different goods efficiently, responding to shifts in consumer tastes (stocking the hits and discontinuing flops); setting pricing policies (markups and markdowns) to deal with both the direct cost of goods and the nature of consumer demand; and controlling inventory to reduce exposure to risk.
Then the following statement: "The nature of consumer demand has a direct effect on the cost of goods. " is true, false, or inconclusive?
Answer: False