Following Brexit, in 2021 and beyond, should Brompton reduce the price of its core product in the U

Following Brexit in 2021 and beyond, Brompton should not reduce the price of it's core products in the Uk market since the exit of Britain from the EU would enable it gain competitive advantage.

Step-by-step explanation

Prior to Brexit, Britain had a free trade agreement with the EU which means that countries in the European Union would sell their products in the UK market without being imposed with tariffs or quotas. The exit of UK from Brexit means that products from other European markets will be imposed with tariffs and also quotas resulting in an increase in the prices of foreign products. 

Brompton bicycle is a British manufacturer and according to statistics, the company has been expanding it's market share in the UK market since the year 2014. Britain's exit from the EU would enable the company experience an increase in the demand for it's product in it's domestic market since foreign products would become more costly which means that consumers would prefer to purchase Brompton's products.

This means that the elasticity of demand for the company's products will become more inelastic which would result in little change in demand if the company adjusted the prices of it's products. So the company will not experience a high change in the demand for i's products in the domestic market if it adjusted it's prices. Rather than lowering i's prices and reduce it's revenue and profitability margins, the company should rather maintain it's current prices and retain it's profitability margins since lowering the prices would not benefit the company due to the little change in the demand for it's products.

Reference: Statista(ND) "Annual Turnover of Brompton in the UK Market" Retrieved on March 4,2022. Retrieved from:https://www.statista.com/statistics/949384/brompton-turnover-united-kingdom-uk/