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Yes I agree with this that demand and supply really matters on why a certain price of the basic commodities are rising up or going down. We should take a look on these factors whenever we will be dealing on business.I also know supply and demand of products play a big role in price determination. If demand for products is high, the price will also go up because sellers want to make profit and viceversa. If supply is high, prices will go down because sellers want products to be sold faster to reduce the excess.
It is really inevitable to have such fortuitous events because it give significance on the increase of the price of the basic commodities and even the government cannot make any move for that as the situation arises.Yes, you are right! Here under such circumstances the Law of 'Supply and Demand' comes into action. Because of such natural calamities the transportation gets tougher so the supply at the place where the commodity is required gets hampered though that may be available in ample in the market, so the demand increases so the price too! However such increased prices are having temporary phase! In fact these types od sales selling above the recommended price is termed as 'Black Marketing' which is a clandestine practice of doing business!
This is a very good point, in business one needs to be very creative, when you reduce your price you tend to sell more and faster , the little price cut off can be maximize from the greater volume of sales.Other than the cost of production, raw naterial, transportation, demand and supply...it is also the market share that is very important in determining the cost of the product. If your product targets or is used by larger population, you can have low rice as the sale would be in good number but if the consumer number is limited, you have to have high price to make up for all the costs involved.
This is a good point but you should also remember that there are competitors around, when a company sell at higher price because of the good brand name the customers who can't afford will opt for other brands and if they derive almost the same satisfaction they may influence others to shift base.Brand value of a product is an important factor while determining cost. If the company have a good brand value then it can add more profit margin because buyers will purchase even though the product is at higher price.
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