You have just been hired as a business consultant to determine what pricing policy would be appropriate in order to increase the total revenue of an online clothing store.What would your first step be
A)Increase the price of everything in the store.
B)Look for ways to cut costs and increase profit for the store.
C)Determine the elasticity of demand for the store's products.
D)Suggest that the store purchase an entirely new line of clothing that they could sell more cheaply.

Question

Quizplus · Accepted Answer

The first step in determining the appropriate pricing policy would be to determine the elasticity of demand for the store's products. This will help the business consultant understand how sensitive customers are to changes in price and how much revenue can be generated from different pricing strategies. Simply increasing the price of everything in the store or suggesting the purchase of a new line of clothing are not necessarily effective strategies without first understanding the demand for the current products. Additionally, looking for ways to cut costs and increase profit may not necessarily lead to an increase in total revenue if it reduces the perceived value or quality of the products.

You Have Just Been Hired as a Business Consultant to Determine