--%>
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 : Illustrates the internal economies of

    Illustrates the internal economies of scale?

    		•
  • Q : Smoothing techniques or Exponential

    Explain about the term smoothing techniques.

    		•
  • Q : Model of purely competitive resource

    The model of purely competitive resource markets describes how: (1) U.S. income distribution patterns are determined. (2) wages are determined in the United States. (3) resource prices would be determined in efficient markets. (4) competition leads to

    		•
  • Q : Illustrates the demand schedules

    Illustrates the demand schedules important for law of demand? Answer: The perception of law of demand may be explained along with the demand schedules are as follow:

    		•
  • Q : Explain the term average fixed cost

    Explain the term average fixed cost.

    		•
  • Q : Describe the Long term Demand

    Describe the Long term Demand Forecasting.

    		•
  • Q : Find equality of Net economic

    Net economic investment plus depreciation equivalents: (a) the capital output ratio. (b) gross economic investment. (c) gross domestic product. (d) the capital stock. Hello guys I want your advice. Please recommend

    		•
  • Q : State Extrapolation statistical Method

    States the Extrapolation statistical Method of Demand Forecasting?

    		•
  • Q : Which progress illustration was Pilgrims

    Agricultural productivity within Massachusetts Bay Colony increased while Native Americans showed Pilgrims how crops grow faster and better when rotten fish are dropped in along with newly-planted seeds. This new knowledge for the Pilgrims was an illustration of: (1)

    		•
  • Q : Gains from Exchange Can someone help me

    Can someone help me in finding out the right answer from the given options. Persons or nations that can outperform their competitors in all tasks enjoy: (1) Absolute benefits in all outputs. (2) Relative benefits in all outputs. (3) Comparative benefits in all outputs

    		•