Th3.3: ^^ Price of Materials Flashcards
1
Q
As businesses grow so does…
A
so does their demand for raw materials and equipment
2
Q
Although this can increase their bargaining power as they buy in bulk…
A
an increase in demand can cause prices to rise and therefore increase production costs
3
Q
When could this also occur?
A
if the whole industry increases and so firms bid up prices
