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4 February, 04:31

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

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Answers (1)
  1. 4 February, 04:46
    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.
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