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This is probably not true in this case, but in markets with lots of competition, raising the costs raises prices because companies are already providing service
by Eridrus 9y ago
This is probably not true in this case, but in markets with lots of competition, raising the costs raises prices because companies are already providing services close to cost.
Even in less competitive markets, raising the cost of providing a service will shift the supply curve, which can result in increased prices.