Which of the following is a reason for a company to raise its prices?
A)to address the issue of overdemand for a product
B)to win a larger share of the market
C)to use excess capacity
D)to boost sales volume
E)to balance out decreasing costs

Question

Quizplus · Accepted Answer

Raising prices can be a strategy to address the issue of overdemand for a product, which can lead to stockouts, backorders, or long waiting times for customers. By increasing prices, a company can reduce the quantity demanded, alleviate pressure on the supply chain, and restore balance to the market. However, this strategy has to be implemented carefully to avoid alienating customers or inviting competition.

Which of the Following Is a Reason for a Company