Question

How do the concepts of "pricing strategies" introduced in this chapter fit in with the "supply and demand" concepts introduced at the beginning of the semester? You need to cite specific "pricing strategies" cited in the textbook and show how they are (or are not) consistent with supply and demand.

Answer 1

•The market is in equilibrium when flexibly bend converges request bend that provisions equivalent to request. There is a positive connection among cost and amount provided.

•So gracefully bend is decidedly inclined. There is a negative connection among cost and amount requested. So the interest bend is contrarily inclined. At the point when the cost is over the market harmony, flexibly is more than request. That is there is an overflow in the market. Imperceptible hand clear the market.

•As there is an excess in the market, venders need to sell all the overflow items at a low cost so there is constantly a descending weight on the cost.

•On the off chance that the cost is underneath the market equilibrium, request is more than gracefully. It makes a lack. So there is constantly an upward weight on cost until the market is clear.