--%>
Assignment Help - homework help

Explain the role of demand factor in pricing briefly

Explain the role of demand factor in pricing briefly.

E

Expert

Verified

In the case of pricing of a product, demand plays a significant role. In several cases demand occupies a very important role than cost. A demand is the factor which finds out the sales and profit. We identify as per law of demand, demand and price have inverse association. To raise the demand, the firm has to reduce the price. Likewise to decrease the demand the firm has to raise the price. There elasticity of demand is to be considered with determining the price of the product. When the demand for the product is elastic, the firm can fix lower price. When the demand is inelastic then the firm can fix a higher price.

   Related Questions in Managerial Economics

  • Q : What are the levels of Demand

    What are the levels of Demand forecasting?

    		•
  • Q : What is Oligopoly What is Oligopoly?

    What is Oligopoly? Explain in brief.

    		•
  • Q : States the Demand Forecasting in terms

    States the Demand Forecasting in terms of production?

    		•
  • Q : Illustrates the pricing policy and

    Illustrates the pricing policy and practices?

    		•
  • Q : Investment in Specific Human Capital An

    An investment in specific human capital arises while: (w) Chandra learns Japanese to be eligible for a potential job in Tokyo. (x) Chele has a face lift so she can increase her fees for high-fashion modeling. (y) Chelsea practices playing a harp and a

    		•
  • Q : Concavity in production possibilities

    Concavity (or bowed-out shapes) in production possibilities frontiers is described least fine by: (i) The law of diminishing returns. (ii) Resources being unevenly suited for various forms of production. (iii) Rising opportunity costs. (iv) Non-neutra

    		•
  • Q : Resources and Products Flow Model I

    I have a problem in economics on Resources and Products Flow Model. Please help me in the following question. The eventual owners of all resources and products in the society are as follows: (i) households. (ii) Firms. (iii) The tax-paying public. (iv

    		•
  • Q : Derived Demand for Labor All else

    All else identical, a competitive firm will demand more labor when: (w) technological advances lead to automation. (x) the price of the firm’s output rises. (y) more firms enter the industry. (z) competing firms offer their workers more training

    		•
  • Q : What is Diminishing Returns to Scale

    What is Diminishing Returns to Scale?

    		•
  • Q : Problem on Occupational Crowding After

    After vacationing hundreds of restaurants, then a restaurant critic has concluded which in almost all the workers who clear tables and also wash dishes appear to be illegal aliens by Mexico. The critic has observed a phenomenon termed as: (1) marginalized labor. (2) t

    		•