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If the price for a product is set too low, it can lead to increased demand that may outstrip supply, resulting in potential shortages. Additionally, low prices can diminish perceived value, harming the brand's reputation and leading customers to question quality. It may also result in reduced profit margins, making it difficult for businesses to cover costs and invest in growth. Ultimately, sustained low pricing can threaten the long-term viability of the product or brand.
What else can I help you with?
What is floor price in share market?
A floor price is a group-imposed price limit on how low a price can be charged for a product.
Does the quality determine the price of a product?
most of the times yes but price usually depends on the productivity costs not on the quality of the product. A good quality product can be found in low price as and a bad quality product can be branded and expensive.
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 happens to the price of a good when supply is high but demand is low?
the price of the product gose downaka less $$$$$
What is supply and demand economy?
Supply is how much of the product an economy has. The demand is how much the people need the product. These two make the price. Let's say the supply is high and demand is low, the price would be low. If it was the other way around, price would be higher.
What is floor price in share market?
A floor price is a group-imposed price limit on how low a price can be charged for a product.
Does the quality determine the price of a product?
most of the times yes but price usually depends on the productivity costs not on the quality of the product. A good quality product can be found in low price as and a bad quality product can be branded and expensive.
What are the Law of Supply and Law of Demand?
In economics, when a commodity is in high demand or in scarce supply, its price will rise; when a commodity is in low demand or plentifully supplied, its price will be lower.The laws of supply and demand dictate that if a product is in short supply, but the demand is high, the price of the product will also rise. If a product is in overabundance, but the demand is low, the price of the product will decrease.
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
Why is aggregate supply related to the price level?
This is in accordance to the Demand & Supply Theory... When the demand for a product is high and its supply is low, this usually causes the price of that commodity to increase Similarly when supply for a product is high and the demand for that product is low, it causes the price of that product to decrease. Hence the supply is inversely related to the price of any product (Provided the Demand is in accordance to the two points mentioned above)
What happens to the price of a good when supply is high but demand is low?
the price of the product gose downaka less $$$$$
What is difference between joint product and by product?
joint product has a high price value whereas by-product has a low price value. joint products are 2 or more products simultaneously produced. whereas by-product is recovered incidentally
What is a price floor?
A price floor is a government- or group-imposed price control or limit on how low a price can be charged for a product, good, commodity, or service.
What is leader pricing?
you must have a very popular product, of which you will price very low.
What is a violation of consumers rights?
Advertising a product at a low price when it is no longer available
What is supply and demand economy?
Supply is how much of the product an economy has. The demand is how much the people need the product. These two make the price. Let's say the supply is high and demand is low, the price would be low. If it was the other way around, price would be higher.
How price effects can be decomposed into its income effect?
price effects income directly. if price is high then demands will down and profit will high. if price is low demand will increase. and profit will minimum. but due to high selling amount profit can be increase.
