Question

Why would a business owner lower the price of a product
a. because the product is in less demand
b. because the product is in higher demand
c. because the product cost of the product is too high
d. because there is a scarcity of the product

Answer 1

All of the options mentioned can be potential reasons for a business owner to lower the price of a product. However, the most direct answer to the question would be:

c. because the product cost of the product is too high

If the cost of producing or acquiring a product is high, the business owner may lower the price to make it more attractive to customers and increase sales volume.