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Alexxx [7]
3 years ago
8

how will a drastic fall in the price of necklaces affect the quantity if necklaces that rachel supplies? explain your answer

English
2 answers:
Art [367]3 years ago
5 0

Answer:

Price and quality are positively correlated. The price of a product is a good indicator of its quality. You always have to pay a bit more for the best. The marketing literature has addressed the use of price as a surrogate for quality as a decision-making heuristic. That is; the higher the price, the higher the quality.

Hence, a drastic fall in the price of a necklace indicates a drastic fall in it's quality.

Explanation:

nika2105 [10]3 years ago
3 0

Answer:

if the prices get to cheap she won't have enough money to keep making new necklaces and she won't be able to produce them.

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