Price theory // Economics
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The scope of the price theory is to analyze according to the supply and demand of the market and its different trends, it is about understanding in a technical and analytical way the demand curve of buyers with their different price levels, price in cost function, to better understand the price, this is an element of the marketing mix that produces income, which also its cost, since the pricing is too cost-oriented, also the prices do not change with the frequency to take advantage of the changes in the market. Most companies have an initial price when developing a new product, where to find out where to position their product in terms of quality and price, there has been competition between the price segments in the search for a strategy to coexist in the market, since The purpose of pricing is first to determine where to position your market offer, for the maximum scope of the market segment, a very important piece of information when there is a reduction in price is reflected in the increase in total income as long as It is of an other elastic and the opposite would be an inelastic demand, thanks to this it is about analyzing the response of buyers to different price changes.
In more technical ways, how the elasticity of the demand or supply is greater than 1, this is elastic, dear reader, the important thing is when the elasticity of the demand is greater, it is reflected in the price levels, on the other On the other hand, the prices of competitors and substitutes serve as an orientation with the cost, which allows us to establish a lower price limit, the most used method to set prices is to add a surcharge of the cost standards of the product.
Hello friend, good point, the truth is that I don't handle that subject very much but I do know that in general the products with greater demand can increase in price obviously, but in the same way the ones with less demand can remain not necessarily decrease in price, since I believe that the quality of the product also has a lot to do with it.
Well, if what happens that theory explains how speculation is born, how price fixing affects the final consumer.
These theories for the ordinary human being, who does not get so deeply into these terms can be somewhat difficult to visualize. But, it is necessary to read and re-read in order to understand how all this affects our pockets, in colloquial terms.
Thanks for sharing your comment.
Most of our existence is dedicated to buying goods or services, either tangible or intangible, hence the importance of your article related to the important theory of prices, very good your explanation related to the linkage of supply and demand for establishing the value or price of a particular rouble in the market.
Thank you for your financial contributions, successes.