High Markups on a Product Could Lead to Low Profits

question 71

Multiple Choice

High markups on a product could lead to low profits when

• A) competitors have higher markups.
• B) there are no substitutes.
• C) demand is inelastic.
• D) sales dip due to high prices.
• E) supply is inelastic.

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Definitions:

Demands

Expectations or requirements that are placed on an individual by themselves, others, or by situational circumstances.

Emotional Responses

The reactions, often complex and involving physiological, behavioral, and cognitive elements, triggered by internal or external stimuli.

Stress

A physical, mental, or emotional factor that causes bodily or mental tension, which can be from events that make you feel frustrated, angry, or nervous.

Negative Emotions

Feelings that are perceived as unpleasant or harmful, such as sadness, anger, fear, or frustration.