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by coldtea
2979 days ago
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Sales don't work like that. If there are N people who would still buy at BIG_PRICE and M people who would buy if it's LESSER_PRICE and below, even if M > N, you would still be losing money if NBIG_PRICE < MLESSER_PRICE. There's a demand curve, and if you lower below it you don't get more profit, you just sell to more people -- search for product elasticity curves, maximum willingness to pay, etc., for more info. Vendors, and vendors like cinemas even more so, have experimented to find the price that maximizes those curves. |
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