Evaluate the Bakery Owner's Argument

Hard Evaluate The Argument Necessary Information

A local bakery has recently increased its prices by 15% due to rising costs of ingredients. The owner argues that this price hike will lead to greater profit margins, enabling the bakery to remain in business despite economic challenges. However, a local customer argues that higher prices will drive away customers, ultimately reducing sales and profits.

The bakery owner’s conclusion relies on the assumption that:

Most of the bakery's customers are price-sensitive and will seek cheaper alternatives.

Increasing prices will not lead to a decrease in the number of customers.

Demand for the bakery's products will remain consistent despite the price increase.

The cost of ingredients will stabilize in the near future.

The bakery's competitors will also raise their prices.

Hint

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