Businesses wish to sell their products at high prices. consumers with to buy products at low prices. in a market economy this conflict is usually resolved by competition.
Why do Supplies sell more at a higher price and less at a lower price?
Typically, economists combine the volumes that suppliers are willing to produce at various prices into a formula known as the supply curve. The likelihood of suppliers producing more increases with pricing. On the other hand, the cheaper a product is, the more people tend to buy it.
how are prices determined in a market?
The interaction of a market's supply and demand factors determines price. The desire of consumers and producers to engage in purchasing and selling is represented by demand and supply. When buyers and sellers can agree on a price, a product exchange takes place.
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Answer:
Istructions are listed below.
Explanation:
Break-even point= fixed costs/ contribution margin
Break-even point (dollars)= fixed costs/ contribution margin ratio
Maring of safety= current sales level - break-even point
Margin of safety ratio= (current sales level - break-even point)/current sales level
Answer:
No, since the difference between his calculated stock price and the actual stock price most likely indicates that his estimate of dividend growth rate was incorrect.
Explanation:
Current Estimated Stock Price
P0=D1/(ke-g)
P0=(0.64(1.06))/(0.08-0.06)
P0=33.92
Answer:
skimming.
Explanation:
In this context, it can be said that Luciana will use the skimming pricing strategy.
This strategy consists of setting a relatively high price for the new product or service that will be offered in the market and then gradually lowering its price.
This strategy works by charging a high initial price that will be accepted by the first customers and after the first demand is satisfied, the price will be reduced to attract the most price sensitive customers.