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The following companies and scenarios are fictional. In each case, you are to demonstrate graphically the change in the model and then provide a hypothetical explanation of what happened.
1. Becky’s Bongos sales are falling even while they continue to decrease price.

Respuesta :

tochjosh

Answer:

The fact that Becky Bongos sales are falling continually even though they keep decreasing the price shows that the underlying problem is not as a result of the customers' dissatisfaction with price. The underlying problem can be any other factors like not paying attention to customers' needs, poor quality of the commodity, lack of proper marketing, and the presence of a superior competition. The solution is not the reduction of price but rather, a closer look should be paid to these other factors.

marvineetesh3

Becky’s Bongos sales are falling, even while they continue to decrease price, is not the effect of decreasing sales. It decreases due to other factors than price.

Why sales are falling?

  • The information that Becky Bongos sales are falling continually even though they keep decreasing the price proves that the given problem is not as an outcome of the price, but it is the outcome of other factors.

  • The given issue can be any other factors like not focusing on customers' needs, giving poor quality of the commodity, lack of correct marketing, and not response in the market due to the presence of a superior competition.

  • The solution of the given situation is not the reduction of price but, there are other factors which affect the sales.

The graph of demand and supply curve are:

Here,

[tex]D_{0} = \text{Old Demand }\\\\D_{1} =\text{New demand}\\\\P_{0}= \text{Original price}\\\\P_{1}= \text{New price}\\\\Q_{0}=\text{Original quantity}\\\\Q_{1}=\text{New quantity}[/tex]

Therefore, decreasing in price is not the causes of decrease in sales, it is due to the other factors.

Learn more about demand, refer:

https://brainly.com/question/3331860

Ver imagen marvineetesh3

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