Econ Essay Week 2

Econ Essay Week 2 - in the peak area of trend because price...

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When would you want to own a business that sells price elastic products? Why? Answer………………………………………………………………………pg.1 References…………………………………………………………………. .pg.2 I believe it would be based on the product. With a newly developed product hitting a market at the ideal time I would want to be at the earliest stages. This would be the most ideal time for maximum profitability, especially in the long run, because it would allow you to be the forerunner or brand loyalty name if your product lives up to demands, price matrix, market target, and
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market requirements. It would also allow for less worry about early competition so you could be the price setter as well. For already developed products, I feel through research, you would want to be
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Unformatted text preview: in the peak area of trend because price matrix and demand quantities are set for you and would only require heavy competitiveness for you to make maximum profit. If a firm wishes to increase market share and increase its sales then price elastic means that cuts in price will beneficial in increasing sales. However, it depends on how other firms react. If One firm cuts its price, demand may be elastic, but if all the other firms follow suit demand is likely to be inelastic and the price war only causes a small increase in sales.(Economicshelp.org) References (Economicshelp.org) Et Al. "Price Elastic Products Are There any benefits?" 20 Mar. 2008. Internet. 12 Sept. 2009. <http://www.economicshelp.org>. Bibliography/Reference...
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This document was uploaded on 07/31/2011.

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Econ Essay Week 2 - in the peak area of trend because price...

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