TUGAS 1 BAHASA INGGRIS NIAGA

Nama : Rijal Fransisco Sinaga

NIM : 044911564

Prodi : Manajemen S-1

I chose second topic for this assignment.

The Impact of High Prices on Demand

When suppliers charge too much for a product, it can have a significant impact on demand. High
prices often lead to a decrease in demand as consumers become less willing or able to pay the inflated
prices. This decrease in demand can result in several consequences for both the suppliers and the
overall market.
Firstly, a decrease in demand can lead to a decrease in sales and revenue for suppliers. As consumers
find the product less affordable, they may choose to postpone or forgo their purchase altogether. This
can result in excess inventory and financial losses for suppliers, potentially leading to a decrease in
production and employment.
Secondly, high prices can create opportunities for competitors offering similar products at lower
prices. Consumers may switch to alternative brands or substitute products, further reducing demand
for the overpriced product. This can lead to a loss of market share for the suppliers and a shift in
consumer preferences.
Lastly, a decrease in demand due to high prices can have broader implications for the market as a
whole. It can signal a lack of competitiveness or market inefficiencies, potentially attracting
regulatory scrutiny. Additionally, it can impact the overall economic growth and stability, as reduced
consumer spending affects various sectors and industries.
In conclusion, when suppliers charge too much for a product, it can result in a decrease in demand,
leading to financial losses for suppliers, market share shifts, and potential market inefficiencies. It is
crucial for suppliers to carefully consider pricing strategies to maintain a balance between profitability
and consumer demand.