It is higher than the equilibrium price in order to be effective
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Customary Pricing
There are various types of pricing strategies followed in the market. They are psychological pricing, odd pricing, free onboard pricing, customary pricing, prestige pricing, dual pricing, ruling pricing, negotiated pricing, mark up pricing, etc. each one can be explained as follows:
Multiple Unit Pricing
“Multiple-unit pricing is a practice where a company offers consumers a lower than unit price if a specified number of units are purchased.”
It is higher than the
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- What combination of changes would most likely decrease the equilibrium price? Multiple Choice supply decreases and demand increases demand increases and supply increases demand decreases and supply decreases supply increases and demand decreasesWhat is the difference between elastic demand and inelastic demand?Given that a monopoly’s marginal cost is not zero, EXPLAIN why the demand must be elastic at the profitmaximizing quantity.
- Suppose the cross-price elasticity of demand between goods X and Y is -5. How much would the price of good Y have to change in order to change the consumption of good X by 40 percent?Assuming A&F’s gross profit margin is 60 percent and cost of goods sold represents the only variable cost, by how much must sales increase to maintain the same gross profit margin in terms of absolute dollars if A&F lowers prices by 10 percent?Give an example of supply and demand market price changes that you or a family member have experienced or that you have learned about through the news media during or after a hurricane, typhoon, tsunami, fire, flood, mudslide, earthquake, or other natural disaster. If prices went up, did you think it was fair? Did you think it was ethical?
- There are many categories of goods available in the market namely, normal, inferior and luxury goods. At the same time, many factors could affect their behaviours in terms of demand and supply. From your understanding what would be the effect of inferior goods when the income of the consumer drops? You are required to discuss this scenario using relevant graphs.How would you expect seasonal fluctuations in demand to affect a rental company’s decisions about pricing rented products such as wedding dresses or convertible cars?Why is the rationing function of price necessary for price to serve this function in the market economy? Discuss
- If your customers can see the value of buying your product or service, they'll happily pay the price. If they don't see that value, it makes little difference how low you set your price, the customer will look somewhere else for the perceived value, even if "somewhere else" costs more than your product or service. True or False?June is looking into buying her first home. She is shown a number of houses on the market, but the market appears to be sluggish because there are so few buyers. Interest rates are steady and June has several good prospect homes to choose from at reasonable prices. June is in a... O Seller's market O Lender's market O Builder's market O Buyer's marketIf the price elasticity of demand for used cars priced between $4,000 and $6,000 is -0.75 (using the mid-point method), what will be the percentage change in quantity demanded when the price of a used car falls from $6,000 to $4,000? Instructions: Round your answer to the nearest whole number (percentage).