Ask Question
1 November, 17:01

What will most likely happen if a toy supplier sets a price too low for a product?

+3
Answers (2)
  1. 1 November, 18:44
    0
    The toy supplier won't be getting as much money, and he might not be getting a profit.
  2. 1 November, 18:47
    0
    Explanation: The suppliers's sales can increase as well as decrease. As we know,

    Sales Revenue = Price x quantity

    Therefore, if he is able to increase his sale such that it compensates for the decrease in price, than the Sale revenue will increase and vice versa

    For example, I was able to sell 10 pencils at a cost of $2 each. Therefore, my Sale revenue was $20. Now if i reduce the price to $1.5, and my sales quantity increases to 15, my sales Revenue will increase to $ 22.5, but if my sale quantity does not increase, my Sale revenue will decrease to $15.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “What will most likely happen if a toy supplier sets a price too low for a product? ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers