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Increase price value profit becomes higher than price, what happens to a company
Answer:
Fixed costs are high, variable costs are low
Explanation:
The reason is that the fixed costs are high because these fixed costs are uncontrollable and their might not be an alternative which means we have to move with higher fixed costs. And this is because most of tasks in manufacturing are handled by the machines not humans. So the cost of maintenance, depreciation, etc are fixed costs which are uncontrollable.
Furthermore, the company has very small variable costs because the company enjoys economies of scales, fast paced manufacturing machines, etc. And this is controllable by investments in another more robust machinery.
Americans purchase more domestically produced electronics.
China has ceased all product marketing to Americans. Chinese gadgets are becoming more affordable. Consumer demand for domestically produced electronics in the US rises as a result of the electronics trade with China.
An economic idea known as demand theory explains the connection between customer demand for products and services and market prices.
Demand is the quantity of an item or service that customers are willing and able to purchase at a specific price in a specific time frame.
Demand theory explains how alterations in customer demand for an item or service have an impact on its market price.
To learn more about tariffs on electronics
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