Price elasticity of demand is not only important for pricing strategy, but for market entry as well. If you are selling your product in a market that is not a good match, sales may still flounder. a. If you intend on selling a higher priced and higher quality product, it is optimal to sell your product in a market/location where consumers are to higher prices and your product has Your customers may be less patient and prioritize convenience over searching for a deal. b. If you intend on selling a product where a lower and competitive price is a key selling point, it is optimal to sell your product in a market/location where consumers are to prices changes and your product has Your customers may also be more patient when searching for potential purchases.
Price elasticity of demand is not only important for pricing strategy, but for market entry as well. If you are selling your product in a market that is not a good match, sales may still flounder. a. If you intend on selling a higher priced and higher quality product, it is optimal to sell your product in a market/location where consumers are to higher prices and your product has Your customers may be less patient and prioritize convenience over searching for a deal. b. If you intend on selling a product where a lower and competitive price is a key selling point, it is optimal to sell your product in a market/location where consumers are to prices changes and your product has Your customers may also be more patient when searching for potential purchases.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
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A.
Option 1: Sensitive, Infinitley Sesitive or Insensitive
Option 2: Elastic
B.
Option 1: Sensitive, Infinitley Sesitive or Insensitive
Option 2: Elastic Demand, Inelastic Supply, Elastic Supply, or Ineleastic Demand
Transcribed Image Text:Price elasticity of demand is not only important for pricing strategy, but for market entry as well. If you are selling your product
in a market that is not a good match, sales may still flounder.
a. If you intend on selling a higher priced and higher quality product, it is optimal to sell your product in a market/location
where consumers are
to higher prices and your product has
Your
customers may be less patient and prioritize convenience over searching for a deal.
b. If you intend on selling a product where a lower and competitive price is a key selling point, it is optimal to sell your
product in a market/location where consumers are
to prices changes and your product has
Your customers may also be more patient when searching for potential purchases.
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