Greene Hamilton
05/02/2023 · Middle School

Why might you underestimate the increase in market quantity demanded when you lower your pric You may not take into account potential new customers attracted by the lower price. Some of your current customers may switch to a rival's product, so a drop in price doesn't prod sales. Lowering the price only increases the quantity demanded for inferior goods.

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Lowering your price might attract new customers, but it can also cause some current customers to switch to competitors, potentially underestimating the overall increase in quantity demanded.

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