A company that was trying to cope with disinflation would most likely:
A) give out more free samples than it would during a period of prosperity.
B) add new product features even if it requires that the product price be increased.
C) mail coupons to the homes and businesses of its target market.
D) redesign products to cut production costs.
E) increase the number of coupons issued on a monthly basis.

Question

Quizplus · Accepted Answer

Disinflation refers to a slowdown in the rate of inflation, meaning prices are increasing at a slower pace. In such times, companies often look for ways to reduce their production costs to maintain or improve profit margins without necessarily increasing prices, which could further dampen demand. Redesigning products to cut production costs is a direct method to achieve this, making it the most likely strategy among the listed options.

A Company That Was Trying to Cope with Disinflation Would