ENTREPRENEURIAL MARKETING
PRICING STRATEGIES
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Adjusting the price has a little to moderate impact on the marketing strategy, and depending on the price elasticity of the product, it will often affect the demand and sales as well.
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TRUE
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FALSE
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Either A or B
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None of the above
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Explanation:
Detailed explanation-1: -The relationship between the total revenue and the price elasticity of demand is that: When the demand is elastic a change in price moves the total revenue in the opposite direction. That is, increasing the price decreases the total revenue, and reducing the price increases the total revenue.
Detailed explanation-2: -When demand is price inelastic, a given percentage change in price results in a smaller percentage change in quantity demanded. That implies that total revenue will move in the direction of the price change: a reduction in price will reduce total revenue, and an increase in price will increase it.
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