Consider firms that introduce new products, such as dvds in 2001. when firms introduce new products, how do they typically det

Question

4 years ago

10

Consider firms that introduce new products, such as dvds in 2001. when firms introduce new products, how do they typically det

ermine the price elasticity of demand for those products? firms with new products often
a. identify price elasticity of demand by asking for government assistance.
b. guess price elasticity of demand based on market competition.
c. approximate price elasticity of demand with market signals such as shortagesshortages.
d. identify price elasticity of demand by using price controls to set price floorsfloors.
e. estimate price elasticity of demand by experimenting with different prices.

Business

1 answer:

cestrela7 [59] · Answer 1 · 2021-12-03T10:56:07+03:00

Firms with new products often estimate price elasticity of demand by experimenting with different prices. When a firm releases a new product, they have to estimate what the demand will be based on the price they set because they don't exactly know what consumers are willing to pay for their item. Often times, a focus group or some type of information pannel is set up to allow consumers to see the product and give recommendations on price points for the company.

Consider firms that introduce new​ products, such as dvds in 2001. when firms introduce new​ products, how do they typically det

Consider firms that introduce new products, such as dvds in 2001. when firms introduce new products, how do they typically det