Asked by Bilal Saeed on Sep 24, 2024
Firms should raise the prices on their goods
A) If the demand for the product is elastic
B) If it acquires a firm selling a complement good
C) If it acquires a firm selling a substitute good
D) Both a and c
Complement Good
A product that is used together with another product, where the use of one increases the demand for the other.
Substitute Good
A product or service that can be used in place of another to satisfy the same need or desire.
- Evaluate the role of market control and rivalry in determining pricing policies.
Learning Objectives
- Evaluate the role of market control and rivalry in determining pricing policies.