ECON550 Georgia State University Lowing or Rising Prices Discussion

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Economics

ECON550

Georgia State University

Description

What factors must a firm consider when deciding to raise or lower its prices? Use a real world example that helps illustrate your answer..................................................................

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Factors that helps Decide Rising and Falling of Prices

Pricing is a critical aspect of a business. It helps enterprises make profits, enter new
markets, attract new customers, and also retain the existing customers. Some of the deciding
factors that businesses use in deciding to raise or lower prices include the following. The
production cost is key when deciding to raise or lower prices (Hu, Li, & Shi, 2015). When the
production cost is higher, the price of products also goes higher. On the other hand, when t...

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