The textbook illustrates demand management in the form of price cuts or discounts. Can demand manipulation for aggregate planning involve price increases? Explain; provide an example

What will be an ideal response?

The text did allude to price increases when it stated that air conditioners are "least expensive in winter"–they must be more expensive when demand is high. Lower prices for one circumstance imply higher prices (or lower discounts) in other circumstances. Student examples may build from text examples, or come from experience, such as: energy companies can use peak-load pricing; transit systems have higher rush-hour fares, etc. The bottom line is that higher prices may lower demand during certain periods. In some cases, that demand will be lost (with the revenue at least partially being made up in the form of a higher price per unit). In other cases, that demand will be pushed to a different period (smoothed), which is actually a good thing for the company from a cost perspective.