Marketing Analysis
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Title: Marketing Analysis

Essay Details:

Subject: Business
Author: Anna P
Date: August 13, 2013
Level: University
Grade: A
Length: 6 / 1573

Essay text:

The CD players cost the wholesaler $70 each. a. Calculate the price elasticity between the $100 and the $135 price levels b. What factors should determine the price to be set? Ans3: A:Priceelasticity: Quantity 1 – Quantity 2 Quantity 1 + Quantity 2 Price 1 – Price 2 Price 1 + Price 2 Price elasticity: 11000 – 7500 11000+ 7500 100 – 135 100 + 135 =1.27 B: It depends on the marketing philosophy. At a price of $135, profit will probably be higher because the firm needs to produce and sell fewer products, thus reducing costs. At a price of $100, more units are sold; this may increase customer base for other products the firm offers and thereby raise overall company sales and profits...

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