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Profit
how a business can improve it’s profitability
Increase the selling price
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Created by
chet singh
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Cards (3)
Why might increasing the selling price lead to profitability
Maximises value extracted from
customers
no
need
for
extra
production
capacity
What will increase the selling price depend on
Price
elasticity of
demand
Would
work
if
customers
remain
loyal
and perceive
product
to be good
value
Why might increase the selling price not work
Competitors
are likely to
respond
customers
may decide to
switch
to
competitors