One way businesses may manage demand is:
A)Building a plant large enough so that production can be increased as demand increases.
B)Rent additional office space.
C)Decreasing variable costs.
D)Raising prices during periods of high demands.
E)None of the above.

Question

Quizplus · Accepted Answer

Raising prices during periods of high demands can help manage demand as it can discourage some customers from purchasing, while also increasing revenue for the business. This is known as demand-pull inflation. However, this strategy may not work for all businesses or may not be sustainable in the long term.

One Way Businesses May Manage Demand Is