Question

raden’s ice cream shop is losing business. He knows that customers are no longer choosing his product because a competing product has become less expensive, yet he has refused to lower his prices. What has happened to Braden’s business? Braden’s customers are using their vote to indicate their choice, the type of decisions consumers make in a economy.

Answer 1

Braden’s customers are using their dollar vote to indicate their choice, the type of decisions consumers make in a market economy.

Answer 2

Step-by-step explanation:

Braden has refused to lower down his prices of the product because of his brand image in the market.

People were previously purchasing the product from his company because there was no alternative available on a lower price than that of his company. But now as there comes another company who is offering lower prices than Braden's company for the same product, people are purchasing that from the other company now. This puts the sales of Braden's company down. But because the brand image of his product is like that, he is not lowering down the prices of his product to show people that his prices are worth the product and this type of business will definitely harm his business sales.