Pricing good or service can be affected
Pricing Essay The government plays a big role in pricings goods.For example whatever product we are about to sell is priced above the amount our country bought it for and that is without including tax.The demand of the product also affects the price.They believe that there are physiological effects in different types of pricings,Such as retail prices.The price that is set on an item is based on what the government would like to price it as well as the special taxes that go along with it.”The final sale price of a good or service can be affected by factors other than supply or demand. For example, the government may impose special taxes that are added to the list price at the time of sale. Some states set mandatory minimum prices for controlled products like alcohol”.
(price determination in economics) The government plays a role in taxes in which they choose to set high tax rates on a good that is worth a lot and in high demand such as alcohol.Psychology of pricing is “Pricing is a concept that transcends profit margins. It’s also a marketing tactic that can help your business boost sales volume.
When you think about pricing, you need to focus on more than what will cover your company’s operating expenses and pay the bills. You need to choose numbers that will compel your audiences to buy”This is the way psychology of pricing works it’s all put into the mind and how consumers calculate the money they are spending on s product.Supply and demand of a product is based on how many consumers actually purchase it and how well they sell. “Supply and demand is perhaps one of the most fundamental concepts of economics and it is the backbone of a market economy. Demand refers to how much (quantity) of a product or service is desired by buyers.
The quantity demanded is the amount of a product people are willing to buy at a certain price; the relationship between price and quantity demanded is known as the demand relationship. Supply represents how much the market can offer”.(Economics Basics) Supply and demand go hand in hand with each other the demand of a product determines its quantity and price.In conclusion pricing in our country is usually measured by the supply and demand,basically what that means is how many people are buying it and how much of it is being made.The psychology of pricing also pays a big role in prices because as being a business owner you need to look at all aspects such as will people invest in it if it is a certain price or not.Lastly taxes on goods are normally made by government and how much they feel is necessary.
