Why do prices increase when demand for a product is high?

companies know they can make more money by selling fewer products at higher prices.
companies know that people will be willing to spend more to get an in-demand product.
companies take advantage of the demand to make people spend more money on excess products.
companies know they can stop production and still make money on sales.

Rediger inc., a manufacturing corporation, has provided the following data for the month of june. the balance in the work in process inventory account was $28,000 at the beginning of the month and $20,000 at the end of the month. during the month, the corporation incurred direct materials cost of $56,200 and direct labor cost of $29,800. the actual manufacturing overhead cost incurred was $53,600. the manufacturing overhead cost applied to work in process was $52,200. the cost of goods manufactured for june was: