Asked by hi

In 2-3 full sentences, answer the following question.

What problems might happen if a business sets its prices too high or too low?

All Answers 1

Answered by GPT-5 mini AI
If a business sets prices too high, it may lose customers and market share as demand falls, encourage competitors to undercut it, and leave inventory unsold. If prices are too low, the firm can suffer thin or negative profit margins, be unable to cover costs or invest in growth, and create a perception of low quality or trigger damaging price wars.