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If your sales increase morethen that of negative impact of lowering the price of product then in this way you can increase your profit by lowering your sales price.
For example:
if you are selling 10 units of product at $10 each then you are earning $100 but if you conduct a marketing research and get a information that if you lower your price by $1 and u will be able to sell 15 units of your product then you will earn $135 and it is more then of your previous position in this way you can increase profit by lowering price.
But on other hand if you receive information in same marketing research that by lowering price by $1 you will increase sale by 1 unit then you definitely will not decrease price because in this way you will earn $99 which is still less then previous situation and you keep continue with price $10.
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How do you get percent from higher value to lower value?
if my price is 52.00 and I am told that I am 180 percent higher. How do I find the lower value
How do you calculate cost price when given sell price and profit percentage?
Cost Price = Selling Price - Profit Profit = Selling price * profit percentage Example: Selling Price = 10 Profit % = 50% Profit = 10*50/100 = 5 Cost price = 10 - 5 Cost Price = 5
If selling price is S and product price is P then what will be the profit?
Selling price is somethng on which the profit depends so its Selling price - Product price = profit
How do you calculate cost price if we know the selling price and profit?
let the cost price =X sell price=cost +profit selling price=x+profit
How do you calculate Selling Price if you know Cost price and Profit percentage?
profit can be calculated from profit percentage and cost price.profit percentage=profit*100/cost price.profit=selling price-cost price
How does price elasticity of demand affect a firm's pricing decisions?
The price elasticity of demand affects a firm's pricing decisions by determining the optimal profit margin. Price elasticity of demand describes the rate of change of demand in response to a change in price. The higher it is, the higher demand changes in respond to price; lower means very little change. For a good with low elasticity, it is easier to profit off marking-up the price because demand falls little in response to a price increase. For a high elasticity, prices should approach equilibrium because straying from equilibrium results in a higher change in demand than in price.
How can one make money by buying call options?
One can make money by buying call options when the price of the underlying asset increases, allowing the option holder to buy the asset at a lower price than its current market value and then sell it at a higher price. This difference between the purchase price and the selling price results in a profit for the option holder.
How can I profit from a decrease in the price of a stock by selling to open a put option?
You can profit from a decrease in the price of a stock by selling to open a put option because you receive a premium upfront for agreeing to buy the stock at a specific price in the future. If the stock price decreases below the agreed-upon price, you can buy the stock at the lower market price and then sell it at the higher agreed-upon price, making a profit.
How can lowering price upsell the competitor?
By lowering the price you might be able to sell more of your good at a cheaper price with a higher profit while your competitor sells a lesser amount with a higher price and almost matching your profit
Is it possible to profit from both selling and buying the same stock?
Yes, it is possible to profit from both selling and buying the same stock through a trading strategy called "buying low and selling high." This involves purchasing the stock at a lower price and then selling it at a higher price to make a profit.
How does the selling of gold jewelry create a profit?
When a dealer purchases gold jewelry, it is purchased for a price much lower than it is sold for. When the dealer's purchase price is lower than the sale price, it becomes a profit.
How does supply and demand affect the price of a product?
the higher the demand the higher the price.the lower the demand the lower the price.
How can I withdraw profit from stocks?
To withdraw profit from stocks, you can sell the stocks you own at a higher price than what you paid for them. This difference between the selling price and the purchase price is your profit. You can then transfer this profit to your bank account or reinvest it in other stocks.
How can one make money on call options?
One can make money on call options by purchasing them at a lower price and then selling them at a higher price before the option expires. This allows the investor to profit from the difference in the option's strike price and the market price of the underlying asset.
Is the price of petrol getting higher or lower?
most definitely higher.
Explain baumol's sales maximization theory.?
maximising sales and it is where AC=AR..this the point where the maximum amout of sales take place. The firm only makes a normal profit at this stage.
How does price level influence consumption?
typically the higher the price the lower the consumption
