Explain the role of demand factor in pricing briefly
Explain the role of demand factor in pricing briefly.
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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.
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Explain the pricing under price leadership.
States the Extension and Contraction of Demand.
Explain the external economies of scale.
Explain the target pricing briefly.
Illustrates the relation between Average Revenue, Total Revenue and Marginal Revenue?
Explain the Arc Method of Measurement of Elasticity.
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Illustrates the factors changes in demand?
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