Or they may merely find a way to increase the supply of the same product or service. In any event, now they have increased the supply of the product for the consumers. The suppliers now find that they cannot charge such high prices because there are more competitors for the consumer's money. In this case the supply gets higher and the price gets lower. When supply gets too high for the demand, business owners drop prices in order to attract consumers.
Businesses work hard to make enough sales to cover their costs and then make a profit .
Businesses also must try to keep their costs as low as possible in order to make a profit. One of the highest costs of providing a product or service is the cost of workers. Human capital is the economic term for tho people that produce a product or service. An increase in the amount of work produced by the workers without an increase in pay leads to an increase in productivity for the business. The resulting high productivity keeps the costs per item low and helps increase profits for the company.