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Before we go ahead with pricing strategies we should be familiar with Price mechanism.

Price of any product is influence by its demand and supply.

Law of demand: if Price rises demand falls because people will not be able to buy the same quantity of product with the same money they have.

Law of supply: price rises supply rises because more and more suppliers will be willing to sell the product as there is more profit.

Price of the product in the market is determined at the price level where the demand equals the supply.


Watch a Video- Factors affecting Pricing

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