predatory pricing

• What is predatory pricing?

  A business lowering their prices so any competitor cannot make a profit and compete
• What does predatory pricing depend on?

  The strength of a brand and whether they can afford to cut prices
• Give a benefit of predatory pricing?

  Drives competitors out the market place or discourages new entrants to the market
• Give a drawback of predatory pricing ?

  Depends on the price elasticity of the product - low elasticity would make a difference to consumer demand