Why must the Price Demand curve be studied before any strategy or decisions are made on price?

Why must the Price Demand curve be studied before any strategy or decisions are made on price?



The price demand curve must be studied before any pricing decisions are made because there is a different amount of demand for each price level. Therefore, companies must evaluate if the extra revenue they earn per sale is greater than the number of sales they will be losing due to higher prices.



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Principles of Marketing

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