Answer
The downward demand spiral happens when a company loses customers because it can't match competitors' prices. This can lead to higher costs and further loss of customers. When setting prices, companies need to think about what their competitors are doing and what their customers want.
Work Step by Step
The downward demand spiral happens when a company loses customers because it can't match competitors' prices. This can lead to higher costs and further loss of customers. When setting prices, companies need to think about what their competitors are doing and what their customers want.
