Candace sells the muffins in her bakery at a higher price than the big-box grocery but she has a steady stream of customers willing to pay what she asks.Candace also supports local charities.What would likely happen if she lowered her prices and stopped her charitable contributions?
A)Nothing
B)Customers would go elsewhere.
C)Business would increase.
D)Income taxes would decrease.

Question

Quizplus · Accepted Answer

Candace's customers are willing to pay a higher price for her muffins, likely because they value the quality or supporting a local business. If she abruptly lowered her prices and stopped her charitable contributions, her customers may assume that the quality has decreased or that she is no longer supporting local charities, which could result in them going elsewhere for their baked goods.

Candace Sells the Muffins in Her Bakery at a Higher