Question

A flower delivery business wants to raise their overall sales volume to increase profit. After analyzing their costs, they choose their most popular line of flower arrangements and run a promotion on those arrangements. How would this promotion lead to higher profits?
A) By lowering the cost of the flower arrangements to increase margin.
B) By raising the revenue to increase demand.
C) By lowering the price of the flower arrangements to increase demand.
D) By raising the margin on the arrangements to increase revenue.

Answer 1

Answer:

C) By lowering the price of the flower arrangements to increase demand.

Explanation:

According to the law of demand, the lower the prices, the higher the quantity demanded and the higher the price ,the lower the quantity demanded.

When prices are reduced, demand increases, revenue increases and net profit increases.

I hope my answer helps you.