Higher prices do not always result in lower sales or lower prices in higher sales because of:

a. customers lack of information on prices
b. the transactional role of prices
c. the role of pricing as an implicit promotional element
d. the elasticity of demand for the services in question
e. the use of break-even analysis in setting prices
Asked May 05, 2013
d. the elasticity of demand for the services in question. An interesting example of lower prices not resulting in higher sales was the collectible comic book market about ten years ago, when after a tremendous rise in prices all the prices went down and stayed down without any interest from buyers because of the lack of demand from customers.
Answered Jun 07, 2013

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