Firms would rather shrink package sizes than raise prices because consumers will feel less of a loss from the change in package size.

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Skyler Atchison · Accepted Answer

Final Answer : True, Explanation :  Shrinkage in package size is a common strategy used by firms to maintain profitability while avoiding a significant impact on consumer demand. Consumers may not immediately notice or be as negatively affected by a decrease in package size as they would be by an increase in price, as the cost per unit may remain relatively unchanged.

Firms would rather shrink package sizes than raise prices because consumers will feel less of a loss from the change in package size.

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