Author Question: Discuss the demand considerations that differentiate the pricing of services from the pricing of ... (Read 135 times)

penza · **on:** Jun 28, 2018

Discuss the demand considerations that differentiate the pricing of services from the pricing of goods.

Question 2

A change in international, federal, state, or local laws and regulations is an example of a political trend.

Indicate whether the statement is true or false

Jordin Calloway · **Reply #1 on:** Jun 28, 2018

Answer to Question 1

First, demand for services tends to be more inelastic. Cost increases are often simply passed along to consumers. Second, consumers of services often implicitly bundle prices. For example, the demand for food services at a theme park may be affected by the price of the theme park's hotel and ticket prices. Consequently, the cross-price elasticity of services should be taken into careful consideration. Finally, due to the supply and demand fluctuations inherent in services, price discrimination strategies should also be investigated.

Answer to Question 2

False