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?

Question

Quizplus · Accepted Answer

Candace's current price and charitable contribution strategy seems to be working, as she has a steady stream of customers who are willing to pay her higher prices. If she were to lower her prices and stop her charitable contributions, she may not be able to maintain the same level of customer loyalty and could lose customers to competitors who offer similar products at lower prices. Therefore, customers would go elsewhere.

Candace Sells the Muffins in Her Bakery at a Higher