Business Middle School

Why would businesses supply more product at higher prices?
A. Businesses need to sell more or they will waste money on shelf space.
B. Consumers buy more with higher prices.
C. Businesses will increase production to make more profit.
D. Consumers are willing to pay more as supply increases.

Answers

Answer 1

Businesses would supply more product at higher process so that C. businesses will increase production and make more profit. If a business could make more products and sell them, they are able to make more profit off of what they are selling however, if thsoe products aren't moving, they would be wasting production time and losing money. For a business to create more, they need to be profitable in what they are increasing and how many labor hours they are using.

Answer 2

Businesses will increase production to make more profit would businesses supply more product at higher prices. Hence, option C is correct.

How do businesses increase production?

Enhance the number of work shifts: By extending the time available for production, a manufacturing company can increase its production capacity. To incentivize workers to put in more time, manufacturers might implement overtime compensation. Manufacturers can also choose to operate on shifts.

Increases in capacity are made in response to both real and expected increases in consumer demand. In most cases, immediate capacity increases can be attained by: Longer use of current resources utilizing another person's equipment.

It can increase profit margins and lower cost per unit. increase labor efficiencies of scale (particularly useful for businesses with challenges keeping skilled staff) possibly lower energy costs

Thus, option C is correct.

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