Question

If we observe a decrease in price of a good & an increase in the amount of the food bought & sold this could be explained by...

Answer 1

Answer:

Penetration pricing

Explanation:

Penetration pricing is a marketing strategy that is used to draw customers to a particular good or service by lowering its price. The reasons why companies use penetration pricing is to introduce a new product into the market by creating awareness and also to draw customers away from competitors that  have their prices on the high side.

So, if we observe a decrease in price of a good & an increase in the amount of the good bought & sold this could be explained by penetration pricing.

The goal of this is to draw attraction from customers to the product and also keep them once the prices have been returned to their normal levels.