Price adjustment refers to the process of changing the price of a product or service in response to various factors. These factors can include changes in demand, competition, production costs, or market conditions. Businesses often adjust prices to remain competitive or to maximize profits. For example, if a company notices that the demand for its product, such as smartphones, has increased significantly, it may raise the price to capitalize on this demand. Conversely, if a competitor lowers their prices, the company might reduce its prices to attract more customers and maintain market share.