Question

Examples of a company experiencing a death spiral include... (choose all that apply)

1) increasing capacity and producing more of a popular product based on increased customer demand
2) increasing a product's price when the product is experiencing a decrease in demand
3) a major customer no longer purchasing a product causing a company to increase the product's price

Answer 1

A company experiencing a death spiral may include increasing a product's price when demand is decreasing and losing a major customer.

Step-by-step explanation:

Examples of a company experiencing a death spiral include:

1. Increasing a product's price when the product is experiencing a decrease in demand: This can lead to fewer customers purchasing the product, further decreasing demand and profitability.
2. A major customer no longer purchasing a product causing a company to increase the product's price: Losing a major customer can have a significant impact on a company's revenue, and increasing the price may further deter other customers from buying.