Question

A company has determined that changes in price will not dramatically impact the number of sales they are able to make. What should they do to maximize profits, then?
A. Lower prices since customers will still buy about the same amount
B. Alternate between hight and low prices
C. Keep prices the same, since they don't really impact the number of customers
D. Sell at a somewhat higher price since customers will still purchase even at a higher price

Answer 1

Answer:

Sell at a somewhat higher price since customers will still purchase even at a higher price ( D )

Explanation:

The type of goods and services that changes in prices doesn't r affect the quantity/demand bought by the consumers are usually staple goods which are a necessity and not a want but a serious need. A company if after much research discovers that the demand for a particular product is unwavering( fixed ) they can increase the prices in order to maximize profits form the little amount of goods been produced/sold in the open market. while in other hand if the demand for a particular product is not stable any change in price can significantly affect the demand for the good or service leading to a loss for the company.