In the past few years, there has been a large increase in the price of off-road vehicles. For example, Polaris has raised prices by as much as $5 per hour for their products. This is an attempt to offset increasing costs of production and labor. Economists have predicted that this trend will continue and that more companies will follow suit with higher prices on their products. In theory, this leads to an increase in demand for these items because they are now more valuable than before. But is it really true? Let’s see what research says! This is an attempt to offset increasing costs of production and labor. Economists have predicted that this trend will continue and that more companies will follow suit with higher prices on their products. In theory, this leads to an increase in demand for these items because they are now more valuable than before. But is it really true? Let’s see what research says! What does the research say about off-road vehicle demand when prices rise? The first study I found looked at how price changes affect consumer purchasing behavior. They used data from a large retailer which tracked customer purchases over a six month period following two different sales events; one where there was no change in pricing strategy (control), or one where the store reduced its list prices by 20
