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42.Which of the following is NOT a reason for increasing prices?  A. Cost pressures.  B. Curbing demand  C. Price comparison.  D. Price war

Question

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Solution

The correct answer is D. Price war.

Here's why:

A. Cost pressures: This is a reason for increasing prices. If the cost of production or raw materials increases, a company may need to increase their prices to maintain their profit margins.

B. Curbing demand: This is also a reason for increasing prices. If demand for a product is too high and the company cannot keep up with production, they may increase prices to slow down demand.

C. Price comparison: This can be a reason for increasing prices. If a company sees that their competitors are charging more for a similar product, they may decide to increase their prices to match or exceed those of their competitors.

D. Price war: This is NOT a reason for increasing prices. A price war involves companies lowering their prices in an attempt to undercut their competitors and gain more market share. It does not involve increasing prices.

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