Question

Suppose you run a company that makes and sells smartphones. If the stores in which your phones are sold cannot stock enough phones to meet customer demand, what would you do? Would you produce more phones or fewer phones? Would you change the price of your phones? Explain your decisions. Write a minimum of 3 sentences in your response in the space below.

Answer 1

If the stores in which my phones are sold cannot stock enough phones to meet customer demand, I would definitely produce more phones. This would be the logical decision in order to meet the high demand. Additionally, I would consider increasing the price of my phones in order to take advantage of the high demand. This would be beneficial for the company's revenue and profitability. However, it is important to note that a price increase should be done carefully and with consideration of the market conditions and competition in order to avoid any negative impact on sales.