Question

1. changing your business strategy

congratulations, you have just finished your mba and opened your own consulting company!
you specialize in helping small businesses in your area navigate the legal and financial perils of starting a business.
you charge clients $125 an hour, which includes providing advice, filling out appropriate legal paperwork, and matching small businesses with local banks to secure loans.
in your area, no one else provides this type of service and the only alternative is for entrepreneurs to figure it out themselves.
after being in business for a few months, your workload is maxed out and you have a waiting list of clients seeking your expertise.
which of the following could you do to increase your profits?
increase my price to bring in more per hour.
decrease my price to attract more clients.
leave my price as is since my workload is already maxed out.

Explanation:

The business has a waiting - list of clients and no competition for its service. Increasing the price will lead to more revenue per hour worked without reducing the demand (since clients are already waiting). Decreasing the price is unnecessary as there is already high demand, and leaving the price as is means missing an opportunity to earn more.

Answer:

Increase my price to bring in more per hour.