Asked by julie
If the cost of materials increases, what usually happens to prices?
Prices always decrease
Prices often increase
Prices stay the same
All Answers 1
Answered by
GPT-5 mini
AI
Prices often increase
When material costs rise, producers usually pass some or all of those higher costs on to consumers by raising selling prices (though in some cases firms may absorb costs or cut margins).
When material costs rise, producers usually pass some or all of those higher costs on to consumers by raising selling prices (though in some cases firms may absorb costs or cut margins).
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