When a new product has high demand in the market,how should a company react?
A) Increase the supply of the product
B) Decrease the supply of the product
C) Reduce the price of the product
D) Maintain the current supply until demand falls
E) Create an artificial shortage of the product

Question

Quizplus · Accepted Answer

When a new product has high demand in the market, the best choice for a company is to increase the supply of the product to meet the demand. This will not only help the company maximize its profits but also ensure customer satisfaction and retention. Decreasing the supply or creating an artificial shortage of the product may lead to unhappy customers and loss of potential sales. Reducing the price may also be an option, but only if it aligns with the company's overall pricing strategy and does not compromise profitability. Maintaining the current supply until demand falls may result in missed opportunities and loss of market share to competitors.

When a New Product Has High Demand in the Market,how