ENTREPRENEURIAL MARKETING
PRICING STRATEGIES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What is one of the reasons why a company would raise prices on a product?
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A company may raise prices if there was an influx of the same product on the market.
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A company may raise prices if there was an increase in the cost to make the product.
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A company may raise prices if the product is not selling.
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A company may raise prices if it is going out of business.
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Explanation:
Detailed explanation-1: -One of the most basic reasons companies raise prices on their products and services is to adjust to increased business costs. A product reseller, for instance, might raise prices simply because its supplier raised prices on materials or finished goods.
Detailed explanation-2: -If the price goes up, the quantity demanded goes down (but demand itself stays the same). If the price decreases, quantity demanded increases. This is the Law of Demand.
There is 1 question to complete.