You manufacture construction equipment. The price of steel has increased by 30%, forcing you to increase the price of your equipment by the same amount. What is the likely effect?

Question

Quizplus · Accepted Answer

When the price of a product is increased, the demand for that product usually decreases. This is because customers are less willing or able to pay the higher price, so they may choose not to buy the product or look for alternative options. As demand decreases, sales and profits also decrease.

You Manufacture Construction Equipment