Question

   Is it always useful for a seller to lower the price in order to increase sales   revenue? Support your arguments with logic from price elasticity. 

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Answer 1

Answer:

assuming you are cost remained the sale lowering prices to increase sales also lower the profit margin you make on each unit that you sell on the other hand,much of the time lower prices will lead to higher sales volumes, which may make up for the lower profit margin.

Answer 2

No, it is not always useful.

There is a wide misconception about lowering the price in order to increase sales revenue. This not always works that by lowering the product price or service will always increase sales. Well, there are many reasons. First, most vendors believe that price, whatever the price is, generates "price function" , and lower prices would equal lower friction. Other reason is just that consider ourself with as example as when we heard prices increases how we react. But there is a twist, when it comes to buy a product or services, we know the quality and benefits your product or service provides. our potential customer doesn't. Having said that, everybody wants to bargain,  and because of that, if we sell through sales people, our customer will still try to negotiate the price down.

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