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Selling price can increase, decrease total company revenues

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Analyze how changes in the selling price can increase or decrease the total revenues of a company. How does the relationship between selling price and total revenues impact financial management? Provide specific examples to support your answers.

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The expert analyzes the change in selling prices which can increase and decrease total company revenues.

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Changes in selling prices can affect revenues by creating an environment where the revenues increase or decrease. This is not always in the obvious ways, such as to increase prices will make revenues increase and to decrease prices means a loss of revenues.

The decrease in revenues might bring in more people and more people buying can create increases in revenue. This can work in two ways, either the people buy more of the lesser priced items, or they buy the lesser priced items and other items as well, often items they might not have bought previously if the price of the ...

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