In: Economics
You’re finally ready to launch your first suite of services at your startup. You have no business or economic background and are unsure how to set the price. Your gut tells you to charge $700/year. Based on what we’ve learned in this course about the type of political and economic systems and price-setting strategies, explain how you would determine prices for your business. Be sure to mention the laws of supply and demand, the types of economic/political systems involved, and any key economic concepts involved. (one small paragraph in your own words)
Prices of products determine its demand and quantity supplied. Prices should be set carefully by the seller because of prices are too high, consumers will not but the product and if prices are too low then seller will not be able to earn profits. To set an efficient price following methods should be used: