What is your view of a company which has seen a huge increase in sales due to a significant drop in prices and a strong volume effect?

 

Answer:

My view is that the company is in a perfectly competitive market, and the products are highly elastic

Step-by-step explanation

The products sold by the company are highly elastic, and the company has strong competitors who have substitute products

High elasticity means that there is a high correlation between demand and pricing, where low pricing will cause demand to go high, and high pricing of goods will cause the demand to drop

In this view, the company can be said to be competing in a perfect competition market involving many players and close substitutes