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If a business overstocks a product will the price go up or down?
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∙ 14y ago
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Wiki User
∙ 14y ago
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Should a business raise prices if it wants to increase revenues if the price elasticity for a product is under 0?
no i think it's unfair because then when their rates go down we have to pay more unless their going out of business.
What are some of the factors that the market price of a product depends on?
if there is high demand for it but little of the product it will ofcourse go up in price and if there's low demand but a lot of the product the market price will go down dramatically
What is the role of price in marketing?
price determines the actual value for a given object or service .It is the instinct value of thet product so if price is higher satisfaction of a consumer from using a product may get a down turn as he may search for a substitute.
A Consumer's demand curve for a product is downsloping because?
As a consumer with a finite amount of resources there is a point where the product will become unattainable after it reaches a certain price. Price goes us, demand goes down, therefore the demand curve is downsloping in relationship to the increasing price.
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 will a change in price do for a product?
It will affect its sales. If the price goes up, depending upon what the product is the sales may go down. When the price goes down, the sales will probably go up.
Should a business raise prices if it wants to increase revenues if the price elasticity for a product is under 0?
no i think it's unfair because then when their rates go down we have to pay more unless their going out of business.
How might you calculate elasticity of supply?
Elasticity of supply is the amount a price changes based on changes in supply. An elastic good's price will change as the price changes. If the good is inelastic, as the supply of the product changes, the price does not change. Inelastic curves are very straight up and down. Elastic curves are straight horizontally. Elasticity of supply is an important factor for business managers. Business managers want to know how the price they offer for their product will change based on how much they produce.
What are some of the factors that the market price of a product depends on?
if there is high demand for it but little of the product it will ofcourse go up in price and if there's low demand but a lot of the product the market price will go down dramatically
What is it called when the price of a product goes down and the demand goes up?
A deal.
What Distinction between price elastic and price inelastic?
Elasticity is "a measure of responsiveness that tells us how a dependent variable such as a quantity responds to a change in an independent variable such as price." Basically, that means that elastic product's demand is affected by price and an inelastic product's demand is unaffected by price.For example: if a product is elastic, the price goes up and demand goes down, or the price goes down and demand goes up. Examples are electronics, candy and junk food, and even cars.If a product is inelastic, the demand will stay the same no matter the price. Examples are medical supplies.
What is the role of price in marketing?
price determines the actual value for a given object or service .It is the instinct value of thet product so if price is higher satisfaction of a consumer from using a product may get a down turn as he may search for a substitute.
A Consumer's demand curve for a product is downsloping because?
As a consumer with a finite amount of resources there is a point where the product will become unattainable after it reaches a certain price. Price goes us, demand goes down, therefore the demand curve is downsloping in relationship to the increasing price.
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
How does demand affect prices?
If you have lots of product A, and all of your competitors also have lots of product A, you may need to reduce price in order to attract custom to your business and get a head start on your competition. If this process is repeated by all your competitiors, you may need to reduce your price further and so on.The opposite applies when you have lots of product B and your competitors have little or no product B. You could then increase prices as there are few options for the customer, who will have little option but to pay the prices you ask.( To Producer)If you produce product A which is highly demanded in the market you may set your price high, but as the demand of the product decline you will be forced to reduce you price to maintain your costomers.(To Consumers)If a product is sold at a high price then you will buy/demand less quantities(necessary to purchase) but if the price decline then the demand will increase. But this is affected by several other factors, such as necessity of the product, usage of the product (technically we can say ELASTICITY of the product)(Law of Demand)The law of demand states that "the higher the price the lower the quantity demanded, the lower the price the higher the quantity demanded.
Who decides what price is fixed in a supermarket?
Ultimately, the purchaser determines the price of a product. A manufacturer will determine a wholesale price and possibly a suggested retail price. Retailers will decide if they think they can sell the product at a satisfactory level above the wholesale cost. However, if a product goes on the shelf at $10 and no one buys it, the retailer will mark it down until it sells. So the only price that matters is the one that someone is willing to pay.
If a producer overproduces and sets the price of his product too high to allow him to sell all of his production?
If the availability of a product is high (The result of over production) and its price is also high, then the sales usually comes down. When there is excess availability of stuff, the price tends to go down and to ensure that all the goods are sold, the producer may have to reduce his price. trying to increase the price when surplus supply is there would have a negative effect and the sales may plummet...
