Mae is considering raising the price of her cinnamon rolls in order to maximize her profits. Describe the factors that will help her determine the best price for her cinnamon rolls

What will be an ideal response?

Mae should take into consideration the basic conflict of price-setting, which is that the higher the price of an item, the more likely she is to supply the product, but that the lower the price, the more likely the product is to be purchased. Mae must consider whether the demand for her cinnamon rolls is high enough that customers will still want to buy them at a higher price. Holding all other factors constant, prices are set at a point where supply equals demand.