Anon Corporation Is a Manufacturer of Widgets

question 42

Short Answer

Anon Corporation is a manufacturer of Widgets. Faced with increasing input material costs, the company is contemplating a price increase in the range of 15-20 percent. There are significant disagreements among senior personnel in the company about this move.
Which of the following, if true, would strengthen the argument in favor of a price increase?
Substitutes for Widgets are available in the market.
The price of materials consumed along with Widgets has gone up.
A change in the environment is likely to stimulate overall demand for Widgets.
Competitors have announced that they intend to keep prices at current levels.
Relaxation of import restrictions would lead to foreign competitors flooding the market.

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Definitions:

Intangible Personal Property

Non-physical assets owned by an individual or a business, such as intellectual property, stocks, or bonds.

Intellectual

Relating to the intellect or involving the exercise of the mind, often associated with knowledge and thinking processes.

Ephemeral

Lasting for a very short time; transient.

Real Property

Land and any permanent structures attached to it, such as houses, buildings, and other fixtures, recognized as legal property.