In situations of excess demand, sellers might lower quality when they are unable to raise prices because they wish to:
raise their profit levels.
raise their sales.
reduce excess demand.
decrease surpluses.
In situations of excess demand, sellers might lower quality when they are unable to raise prices because they wish to:
raise their profit levels.
By lowering quality, sellers can reduce costs while still selling their products at the same price, thereby maintaining or increasing their profit margins despite the inability to raise prices.