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How does elasticity affect a companys pricing policy?
If demand is elastic at the current price, the company knows that an increase in price would reduce total revenues.
How does price elasticity of demand affect a firm's pricing decisions?
The price elasticity of demand affects a firm's pricing decisions by determining the optimal profit margin. Price elasticity of demand describes the rate of change of demand in response to a change in price. The higher it is, the higher demand changes in respond to price; lower means very little change. For a good with low elasticity, it is easier to profit off marking-up the price because demand falls little in response to a price increase. For a high elasticity, prices should approach equilibrium because straying from equilibrium results in a higher change in demand than in price.
Which of the following is not an example of pricing based on group differences in elasticity of demand?
Cash rebates for purchases of automobiles.
How substitutes affect elasticity?
Because elasticity means when the demand is changing. a subsitute consumer in choice of theory. the substiture affects elasticity is it changes over time. substitute is choice and elasticity is demand. put those together and you have a fair deal with your money.
Importance of elasticity of demand?
It is important because if a company doesn't understand their product's elasticity of demand, they are screwed!
How does elasticity a company's pricing policy?
If demand is elastic at the current price, the company knows that an increase in price would reduce total revenues.
How does elasticity affect a companys pricing policy?
If demand is elastic at the current price, the company knows that an increase in price would reduce total revenues.
What are pricing objectives of FMCGs Services industry and Nonprofit Organizations?
Pricing objective is the main component of pricing process. For FMCGs Services industry and Nonprofit Organizations you have to consider, financial, marketing and strategic objectives of the company, the objectives of your product, Price elasticity, available resources.
How does price elasticity of demand affect a firm's pricing decisions?
The price elasticity of demand affects a firm's pricing decisions by determining the optimal profit margin. Price elasticity of demand describes the rate of change of demand in response to a change in price. The higher it is, the higher demand changes in respond to price; lower means very little change. For a good with low elasticity, it is easier to profit off marking-up the price because demand falls little in response to a price increase. For a high elasticity, prices should approach equilibrium because straying from equilibrium results in a higher change in demand than in price.
Would the concepts of cross elasticity of cross elasticity of demand and income elasticity of demand be of any interest to a pharmaceutical company?
I am at a loss for the answer please help me.
What is Ramsay pricing?
it assigns costs based on the price elasticity of demand. het higher the elasticity (elastic), the lower the charge of fixed costs when allocated amongst products.
Which of the following is not an example of pricing based on group differences in elasticity of demand?
Cash rebates for purchases of automobiles.
Which of these is not a way smoking affects the respiratory system?
Smoking increases the elasticity of the lungs.
How does substitutes affect elasticity?
Because elasticity means when the demand is changing. a subsitute consumer in choice of theory. the substiture affects elasticity is it changes over time. substitute is choice and elasticity is demand. put those together and you have a fair deal with your money.
How substitutes affect elasticity?
Because elasticity means when the demand is changing. a subsitute consumer in choice of theory. the substiture affects elasticity is it changes over time. substitute is choice and elasticity is demand. put those together and you have a fair deal with your money.
External and internal pricing?
External pricing is pricing of goods and or services that will be sold to out side company's. While internal pricing are prices set to sell goods to another department with in its own company.
What is company oriented pricing?
Pricing driven by a company's internal factors. The company will take a stock of all the internal costs and determine a pricing that will ensure a return. e.g. Cost plus method.
