ECONOMICS

Detailed explanation-1: -Lowering prices is one of the most common strategies that companies use to increase market share for a product. If their competitors also lower their prices, a price war begins. Price wars are most common in industries where there is both heavy competition and several comparable products.

Detailed explanation-2: -Answer. No, it is not always useful. There is a wide misconception about lowering the price in order to increase sales revenue. This not always works that by lowering the product price or service will always increase sales.

Detailed explanation-3: -What is a selling price? The selling price is how much a buyer pays for a product or service. It can vary depending on how much buyers are willing to pay, how much the seller is willing to accept, and how competitive the price is in comparison to other businesses in the market.

Detailed explanation-4: -The higher the price, the more suppliers are likely to produce. Conversely, buyers tend to purchase more of a product the lower its price. The equation that spells out the quantities consumers are willing to buy at each price is called the demand curve.