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21 April, 02:02

Why do prices increase when demand for a product is high?

Companies know they can make more money by selling more products at higher 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.

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  1. 21 April, 02:22
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    The best answer for this statement would be:

    companies know that people will be willing to spend more money to get an in demand product.

    This is based on the consumer’s behavior, it is because of the "want" of that certain product that people tend to want to spend more for it.
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