Market and Demand Factors Affecting Pricing Decisions Pricing in Different Types of Markets Pure Competition Many Buyers and Sellers Pure Monopoly Who Have Little Single Seller Effect on the Price Monopolistic Oligopolistic Competition Competition Many Buyers and Sellers Few Sellers Who Are Who Trade Over a Sensitive to Each Other's Range of Prices Pricing/Marketing Strategies
Pure Competition Many Buyers and Sellers Who Have Little Effect on the Price Monopolistic Competition Many Buyers and Sellers Who Trade Over a Range of Prices Pricing in Different Types of Markets Market and Demand Factors Affecting Pricing Decisions Oligopolistic Competition Few Sellers Who Are Sensitive to Each Other’s Pricing/ Marketing Strategies Pure Monopoly Single Seller
Demand Curves and Price Elasticity of Demand A Demand Curve is a Curve that Shows the Number of Units the Market Will Buy in a Given Time Period at Different Prices that Might be Charged. Price Elasticity Refers to How Responsive Demand Will be to a Change in Price. Price Elasticity of Demand =Change in Quantity Demanded Change in Price
Demand Curves and Price Elasticity of Demand A Demand Curve is a Curve that Shows the Number of Units the Market Will Buy in a Given Time Period at Different Prices that Might be Charged. Price Elasticity Refers to How Responsive Demand Will be to a Change in Price. Price Elasticity of Demand = % Change in Quantity Demanded % Change in Price
Price Elasticity of Demand A.Inelastic Demand Demand Hardly Changes With 皇 a Small Change in Price. P P Quantity Demanded p Period B.Elastic Demand- Demand Changes Greatly With 是 a Small Change in Price. P Q2 Q Quantity Demanded per period
Price Elasticity of Demand Price Quantity Demanded per Period A. Inelastic Demand - Demand Hardly Changes With a Small Change in Price. P2 P1 Q2 Q1 Price Quantity Demanded per Period P’2 P’1 Q2 Q1 B. Elastic Demand - Demand Changes Greatly With a Small Change in Price