It may be necessary to follow a competitor's price rise when there is(are) _______.
A)falling costs
B)excess demand
C)excess supply
D)price insensitive customers

Question

Quizplus · Accepted Answer

When there is excess demand, meaning customers are willing to pay the higher price for the product, it may be necessary to follow a competitor's price rise in order to maintain market share and not lose customers to the competitor.

It May Be Necessary to Follow a Competitor's Price Rise