High prices reflect price gouging

Assignment Help Financial Management

Reference no: EM131818603

Businesses regularly set prices to satisfy demand or to reflect the premium that consumers are willing to pay for a product or service. This can result in $2 bottles of water, $150 running shoes, different prices at gas stations only miles or block apart, and $500 concert tickets as well as different prices in different parts of the country/world or at different times of the year, as described in the textbook chapter.

Choose a stance between either a. or b.

a. Prices should reflect the value consumers are willing to pay.

b. High prices reflect price gouging. Prices should reflect only a minimal markup to the cost of making a product or delivering a service.

Explain your reasoning for the stance that you selected.

Reference no: EM131818603

Questions Cloud

Prepare journal entries using the transaction analysis above : Prepare journal entries using the transaction analysis above. If no journal entry is required, indicate that in the account description

Recorded the frequency of certain butterfly : In experiment 1 you recorded the frequency of certain butterfly traits over six generations in a stable habitat.

Discuss rodriguez sells subscriptions to several magazines : Rodriguez sells subscriptions to several magazines for a 1-year, 2-year, or 3-year period. Cash receipts from subscribers are credited to magazine subscriptions

Excessive and prolonged cortisol release : Discuss how stress can cause excessive and prolonged cortisol release and the types of disease states that may develop as a result.

High prices reflect price gouging : Prices should reflect the value consumers are willing to pay. High prices reflect price gouging.

Develop three to five learning goals for the session : Develop a seminar outline and justify why you included each topic.Include the amount of time to be devoted to each topic.

The strange case of beriberi : In 1887 a strange nerve disease, called beriberi,attacked the people in the Dutch East Indies. Symptoms of the disease included weakness and loss of appetite

Does best buy appear to be both profitable and liquid : Does Best Buy appear to be both profitable-liquid? Evaluate Best Buy’s profitability by computing its net income percentage and its return on equity for year?

Explain how cost accounting information is used to control : Explain how cost accounting information is used to control a business organization

User Account

All Pages