The gross profit percentage is the ratio to watch if you are worried about increased competition. If the company lowers its prices to retain market share without lowering its cost of goods sold, its gross profit percentage will:.

decrease

Explanation:

As we know the gross profit is the net of sales and cost of goods sold.

Gross profit = Sales - Coast of Goods Sold

Lowering the price will decrease the sales value because sales is calculated by multiplying selling price per unit to number of units sold.

If we keep the cost of goods sold constant, then decrease in price will directly effect the gross profit and will reduce it too.

due to the changes the federal reserve is making the unused reserves will impact the economy by them facing inflation. inflation is definfed as the increase in pricing of a good or service but the decline of the value of money used for purchasing those items. when the economy has a high inflation rate, they are subject to money loss and hurt on the economy.