![]() Loss leaders Firms can use knowledge of complementary products to increase overall revenue.For this reason, firms spend a lot of money on advertising to differentiate their products and reduce cross-elasticity of demand. Substitutes? When setting prices firms will have to look at what alternatives the consumer has, if there are no close substitutes they will be able to increase the price. ![]() Using knowledge of cross elasticity of demand If the price of Android Phones increases, this will reduce the demand for Android Phones and therefore, there will be less demand for Android Apps.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |