Why do producers want to sell more of something at higher prices and less at lower prices?
2006-09-12 11:30:45 · 10 answers · asked by Anonymous in Education & Reference ➔ Homework Help
Companies can make more money.It is easier to add 4 more ounces to eye drops and charge $2.00 more than to sell 1 ounce of eye drops for 10 cents. ( im just estimating) It costs almost as much to add a little bit more but they still get the $2.00 extra.
2006-09-12 11:35:16 · answer #1 · answered by blahblahblahblahblah 4 · 0⤊ 0⤋
It is a product of our economy, essentially what this boils down to is volume- how much a company or individual can sell in any given unit of time. Each item carries a cost associated with its manufacture, procurement, etc. Then there is the dynamic of supply & demand- how badly does a targeted population want or more importantly, need that product and how quickly do they need them.
Gasoline is a good model to track, also oil as OPEC controls the supply to the World, the price of oil per barrel is often used as an economic gauge of inflation and growth in world markets.
2006-09-12 18:37:00 · answer #2 · answered by RHJ Cortez 4 · 0⤊ 0⤋
Just word the question the way it's stated in your book... It sounds like you are talking about supply and demand. That means that when a producer has a lot of something, he wants to sell it for less (because obviously the cosumer is not buying this product, hence = lage quantities on the shelf, no high demand for the product); if the producer has very little of something, he wants to sell it for more (because obviously the consumer IS buying a lot of that particular product, hence = small quantities on the shelf, very high demand for the product.)
2006-09-12 18:35:57 · answer #3 · answered by one_sera_phim 5 · 0⤊ 0⤋
because the producers want to make a profit
2006-09-12 18:35:57 · answer #4 · answered by cierra_morton 1 · 0⤊ 0⤋
well they want to get more money I mean who would want to sell something at the same or less then they brought it for.
2006-09-12 18:38:00 · answer #5 · answered by t(-_-)y 3 · 0⤊ 0⤋
Profit margin is greater.
2006-09-12 18:32:06 · answer #6 · answered by Katyana 4 · 0⤊ 0⤋
becasue the more expensive things are in demand so they make more of them and charge more so they can make more money .
2006-09-12 18:36:24 · answer #7 · answered by Anonymous · 0⤊ 0⤋
because they want to get more profit than loss
2006-09-12 18:32:51 · answer #8 · answered by gamer2 3 · 0⤊ 0⤋
Its so they can make alot more money.
2006-09-12 18:32:44 · answer #9 · answered by DESTINIE R 1 · 0⤊ 0⤋
???? are you sure you typed that right?
2006-09-12 18:32:29 · answer #10 · answered by adrixia 4 · 0⤊ 0⤋