If a business reduces the price of products it will lower the profit margin it makes, from the costs of the manufacturing the products, but may result in a higher amount sold. Stock may run out quickly due to a rise in demand.
If a business increases the price of it's products it will have a higher profit margin from the costs of manufacturing the products, but may result in less products being sold, as it may alienate certain market segments. The demand may drop and suppliers may rise prices as a result, but there may be an increase in quality.
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