You are in a meeting about the price strategy to adopt for, Business Economics

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You are in a meeting about the price strategy to adopt for

You are in a meeting about the price strategy to adopt for a product your firm is about to introduce into a new market. Jack says, “We should use price skimming.” Jane says, “We should use penetration pricing.”

a. What assumption is Jack making about the dynamics of price elasticity?

b. What assumption is Jane making about the dynamics of price elasticity?

c. How might you decide between the two alternatives?

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Business Economics: You are in a meeting about the price strategy to adopt for

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