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vovikov84 [41]
4 years ago
8

Why do companies lower product prices and offer free samples?

Business
1 answer:
FrozenT [24]4 years ago
7 0
Companies lower the prices of their products and give out free samples to get the eye of the public; and so many people will test their products, love them and come back and buy it many times because of how low the price is compared to other stores.
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The income effect and substitution effect work in opposite directions and income effect is dominant.

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