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egoroff_w [7]
3 years ago
7

Why do prices increase when demand for a product is high? Companies know they can make more money by selling fewer products at h

igher prices. Companies know that people will be willing to spend more to get an in-demand product. Companies take advantage of the demand to make people spend more money on excess products. Companies know they can stop production and still make money on sales.
Chemistry
2 answers:
yanalaym [24]3 years ago
5 0

Answer:

b on edg

Explanation:

viva [34]3 years ago
3 0

Answer:

Companies know that people will be willing to spend more to get an in-demand product.

Explanation:

When a product is really in demand, many customers are willing to part with more money order to purchase the product, as a result of that, many companies may take advantage of the increasing demand for the product to hike it's price.

Hence, the increase in price may not really have a negative impact on the quantity demanded because the demand for the product is high and customers are willing to spend more money in order to purchase an in-demand product, hence the answer above.

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