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Deciding force for price

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Who decides what the product is worth? If people don't think the price is acceptable, will they buy the product? What does the theory of demand tell us?

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Solution explains the rationale behind deciding price.

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Solution:

In any market situations, sellers tend to maximize their profits by selling their products at the highest possible prices. Sellers profit is defined as the extra amount he has obtained over his explicit and implicit costs.

But finally customer decides product's worth. A customer buys a product only when he gets more benefit by consuming the ...

Solution provided by:
Lokesh Jain, MSc
Education
  • BEng (Hons) , Birla Institute of Technology and Science, India
  • MSc (Hons) , Birla Institute of Technology and Science, India
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