A flower delivery business wants to raise their overall sales volume to increase profit. After analyzing their costs, they choose their most popular line of flower arrangements and run a promotion on those arrangements.

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A flower delivery business wants to raise their overall sales volume to increase profit. After analyzing their costs, they choose their most popular line of flower arrangements and run a promotion on those arrangements.

How would this promotion lead to higher profits?

  1. By raising the revenue to increase demand.
  2. By lowering the cost of the flower arrangements to increase margin.
  3. By raising the margin on the arrangements to increase revenue.
  4. By lowering the price of the flower arrangements to increase demand.

By lowering the price of the flower arrangements to increase demand.

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