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The raise in the price of a product causes an increase in competition.
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∙ 8y ago
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Why would a firm raise the price of a product after a producer determines that the demand for one of its products is inelastic?
The firm would raise the price because the firm's total revenues would probably increase.
If a company raise its price for the holiday over the equilibrium pricethe demand will?
If a company chooses to raise prices during the holidays, they will sell less of that product. Some consumers reservation price will be lower than the new price so they will not buy the product. This is represented by a movement along the demand curve, NOT a shift of the demand curve.
In a perfect market when an individual producer tries to raise their price they will not be able to sell there product?
An individual producer will try to raise the price of a product when there is great demand for the product in relation to supply in order to gain a profit. Other producers in a perfectly competitive market will then lower their prices in order to attract more consumers to their product. This may still produce a profit if enough consumers buy greater quantities of the product to compensate for the low price. Overall this increases demand for the supply.
What does a raise in the price of a product cause?
The rise in the price of a product is going to cause: 1. consumer demand of product to decrease 2. producers supply decreases 3. equilibrium price is uncertain because both demand and supply are shifting However if demand grows relatively more than supply, price will rise, but if supply grows relatively more than demand, price will fall.
Why do buyers pay a high price for somthing tha is scarce?
This is due to the principles of supply and demand. If a product is in high demand but low supply then sellers will raise the price and maximize profits. They also will pay a high price either because they want the product ( a discretionary decision ) or the need it.
When businesses raise the price of a needed product or service after a natural disaster this is known as?
Price gouging
When businesses raise the price of a needed product or service after a natural disaster this is known as .?
price gouging
Why would a firm raise the price of a product after a producer determines that the demand for one of its products is inelastic?
The firm would raise the price because the firm's total revenues would probably increase.
If a company raise its price for the holiday over the equilibrium pricethe demand will?
If a company chooses to raise prices during the holidays, they will sell less of that product. Some consumers reservation price will be lower than the new price so they will not buy the product. This is represented by a movement along the demand curve, NOT a shift of the demand curve.
In a perfect market when an individual producer tries to raise their price they will not be able to sell there product?
An individual producer will try to raise the price of a product when there is great demand for the product in relation to supply in order to gain a profit. Other producers in a perfectly competitive market will then lower their prices in order to attract more consumers to their product. This may still produce a profit if enough consumers buy greater quantities of the product to compensate for the low price. Overall this increases demand for the supply.
What does A raise in the price of a product causes?
The rise in the price of a product is going to cause: 1. consumer demand of product to decrease 2. producers supply decreases 3. equilibrium price is uncertain because both demand and supply are shifting However if demand grows relatively more than supply, price will rise, but if supply grows relatively more than demand, price will fall.
What does a raise in the price of a product cause?
The rise in the price of a product is going to cause: 1. consumer demand of product to decrease 2. producers supply decreases 3. equilibrium price is uncertain because both demand and supply are shifting However if demand grows relatively more than supply, price will rise, but if supply grows relatively more than demand, price will fall.
Why do buyers pay a high price for somthing tha is scarce?
This is due to the principles of supply and demand. If a product is in high demand but low supply then sellers will raise the price and maximize profits. They also will pay a high price either because they want the product ( a discretionary decision ) or the need it.
Is it OK for companies to raise prices while they have the only product out on the market?
By and large, yes. As long as it is not a regulated commodity the manufacterer of a product is allowed to set whatever price they see fit.
Explain the effect on the equilibrium price and quantity if increase in the price in product?
If the price increases it means there is not a lot of product avaible. This is seen when a company can not keep up with demand the tend to raise prices so that demand goes down. This is also seen in with the opposite effects, if a company has too much of a product then they lower prices to increase demand
What does 'jobber price' mean?
Jobber price is what one company would sell their goods to another retail company for. That company would then raise the price on that product and sell it for profit. Margins of profit when selling at jobber price is typically very low, think of it as a wholesale price.
Why did you raise the price of doxycycline?
I didn't.
