Businesses that adjust their prices upward in response to high demand,consistent with economic laws of supply and demand,can experience which of the following outcomes:
A)Underperform other businesses that consider the norms of fairness.
B)Are punished by customers who are more sensitive to fairness than to economic rationality.
C)Make larger profit than businesses that comply with norms of fairness.
D)All of the above

Question

Quizplus · Accepted Answer

Adjusting prices upward in response to high demand can lead to various outcomes: underperforming compared to businesses that adhere to fairness norms (A), being punished by fairness-sensitive customers (B), and potentially making larger profits than those adhering strictly to fairness norms (C), depending on the market and customer base.

Businesses That Adjust Their Prices Upward in Response to High