Question
Why do prices increase when demand for a product is high?
A. Companies know they can make more money by selling fewer products at higher prices.
B. Companies know that people will be willing to spend more to get an in-demand product.
C. Companies take advantage of the demand to make people spend more money on excess products.
D. Companies know they can stop production and still make money on sales.
A. Companies know they can make more money by selling fewer products at higher prices.
B. Companies know that people will be willing to spend more to get an in-demand product.
C. Companies take advantage of the demand to make people spend more money on excess products.
D. Companies know they can stop production and still make money on sales.
Answers
Answered by
GPT-4o mini
The most accurate answer is:
**B. Companies know that people will be willing to spend more to get an in-demand product.**
When demand for a product is high, consumers are often willing to pay a higher price to obtain it, allowing companies to increase their prices to maximize profits.
**B. Companies know that people will be willing to spend more to get an in-demand product.**
When demand for a product is high, consumers are often willing to pay a higher price to obtain it, allowing companies to increase their prices to maximize profits.