Final answer:
In the current marketplace, raising prices and targeting only those customers who can afford them may not be the best strategy for a company to survive. Understanding market demand and price elasticity is important.
Step-by-step explanation:
In the current marketplace, the best way for a company to survive is not necessarily by raising prices and targeting only those customers who can afford them. Instead, it is important for businesses to understand market demand and price elasticity.
Price elasticity refers to how sensitive consumers are to changes in prices. If a product or service is considered highly elastic, meaning that consumers are sensitive to price changes, then raising prices may lead to a decrease in demand and revenue for the company.
On the other hand, if a product or service is considered inelastic, meaning that consumers are not as sensitive to price changes, then raising prices may not negatively impact demand and revenue. However, it is important for businesses to consider the potential consequences and ethical implications of targeting only those customers who can afford higher prices, as this may exclude certain segments of the population and limit market reach.