why do prices increase when demand for a product is high?\ncompanies know they can make more money by…
why do prices increase when demand for a product is high?\ncompanies know they can make more money by selling fewer products at higher prices.\ncompanies know that people will be willing to spend more to get an in - demand product.\ncompanies take advantage of the demand to make people spend more money on excess products.\ncompanies know they can stop production and still make money on sales.
Answer
Brief Explanations:
When demand for a product is high, consumers are more eager to obtain it. Companies recognize that consumers are willing to pay a higher price to get the in - demand product, which leads to price increases.
Answer:
Companies know that people will be willing to spend more to get an in - demand product.