Ask Question
26 August, 13:02

How might a firm respond to a higher demand for its goods?

A. limit its production

B. raise prices

C. cut prices

D. increase advertising

+5
Answers (1)
  1. 26 August, 14:36
    0
    The answer is the option B. raise prices. When the demand increase, while the firm is not able to increase the production, they raise the prices, because there will be buyers willing to pay more. That is the classical equilibrium of the market, offer - demand: increases in demand push the prices upward, increasing in offer pushes the prices downward.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “How might a firm respond to a higher demand for its goods? A. limit its production B. raise prices C. cut prices D. increase advertising ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers