A retailer of winter coats prices each at 500 at the, Financial Management

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A retailer of winter coats prices each at 500 at the

A retailer of winter coats prices each at $500 at the beginning of the selling season and after three months reduces the price of any unsold coats to $350. Using a simple demand function, show how charging two prices can dramatically increase profits for the retailer. Explain why the same argument does not work for toothpaste.

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