When setting prices, a company must consider factors in its pricing environment. such as the business cycle, economic growth, and consumer confidence can have a significant impact on the firm's pricing strategies?

Which of the following best describes the economic effect that results from the government having a budget surplus? a. consumers save more and spend less, enabling long-term financial planning. b. overall demand decreases, reducing the incentive for producers to increase production. c. banks have more deposits, enabling them to make more loans to investors. d. government spending increases, increasing competition for goods and services and driving prices up.