Economics Today and Tomorrow, Student Edition
1st Edition
ISBN: 9780078747663
Author: McGraw-Hill
Publisher: Glencoe/McGraw-Hill School Pub Co
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Question
Chapter 11.2, Problem 2R
To determine
To analyze: The way following concepts affect
Expert Solution & Answer
Answer to Problem 2R
Supply inversely affect the price whereas
Explanation of Solution
| Concepts | How it affects price |
| Supply and demand | When supply decreases and demand remain same, price tends to increase and vice versa.
When demand decreases and supply remains same, price tends to decrease and vice versa. |
| Penetration pricing | When a business uses penetration pricing, that means it has a low price for its products. |
| Price leadership | In price leadership, the large firm fixes the price and the other small firms follow the same. |
Economics Concept Introduction
Introduction: Pricing is an important aspect of a product. It is determined by the supply and demand forces. A lot of expenses and other factors are considered before setting a price so as to cover all the expenses and makes some profit on the sale.
Chapter 11 Solutions
Economics Today and Tomorrow, Student Edition
Ch. 11.1 - Prob. 1RCh. 11.1 - Prob. 2RCh. 11.1 - Prob. 3RCh. 11.1 - Prob. 4RCh. 11.1 - Prob. 5RCh. 11.1 - Prob. 6RCh. 11.2 - Prob. 1RCh. 11.2 - Prob. 2RCh. 11.2 - Prob. 3RCh. 11.2 - Prob. 4R
Ch. 11.2 - Prob. 5RCh. 11.3 - Prob. 1RCh. 11.3 - Prob. 2RCh. 11.3 - Prob. 3RCh. 11.3 - Prob. 4RCh. 11 - Prob. 1AACh. 11 - Prob. 2AACh. 11 - Prob. 3AACh. 11 - Prob. 4AACh. 11 - Prob. 5AACh. 11 - Prob. 6AACh. 11 - Prob. 7AACh. 11 - Prob. 8AACh. 11 - Prob. 9AACh. 11 - Prob. 10AACh. 11 - Prob. 11AACh. 11 - Prob. 12AACh. 11 - Prob. 13AACh. 11 - Prob. 14AACh. 11 - Prob. 15AACh. 11 - Prob. 16AACh. 11 - Prob. 17AACh. 11 - Prob. 18AACh. 11 - Prob. 19AACh. 11 - Prob. 20AACh. 11 - Prob. 21AACh. 11 - Prob. 22AACh. 11 - Prob. 23AA
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