The Dynamics of Pricing

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Title: The Dynamics of Pricing

Essay Details:

Subject: Miscellaneous

Author:

Date: October 28, 2016

Level: University

Grade: A

Length: 3 / 811

Essay text:

External factosr usually set the upper limit price. Before setting prices, the company needs to understand the relationship between price and demand for its products. In the US, the MP3 market can be classified as a monopolistic competition where many buyers and sellers trade over a range of prices because sellers can differentiate their offers to buyers. A clear example is Apple's iPods, which offers a wide range of options to consumers in terms of prices and features. With the introduction of the scrollwheel, Apple was able to differentiate his MP3s from the rest of competitors. For consumers, the introduction of the scrollwheel meant a completely new dimension to MP3s and how consumers could access their music in these small players...

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