Top 4 Roles of Demand and Costs in Pricing Decisions
The following points highlight the top four roles of demand and costs in pricing decisions. The roles are: 1. Market Versus Firm Elasticity 2. Demand for Buyer's Output 3. Likelihood of Competitive Entry 4. Demand Consequences of a Product Line. Role # 1. Market Versus Firm Elasticity: Price elasticity of demand is a measure of the degree to which buyers [...]