Question
A price sensitivity graph plays a crucial role in pricing strategies. It helps visualize how a particular pricing strategy, such as price skimming, affects the number of units sold over time. The graph tracks units sold on the y-axis and price on the x-axis. This visualization can be used with projected sales, real-time sales data, or both to assess how projections match reality. It aids in understanding the relationship between price and demand, thereby assisting in making informed pricing decisions.
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Execs can also use a price sensitivity graph to visualize how a strategy like price skimming affects the number of units sold over time. Units sold are tracked on the y axis, and price is tracked on the x-axis. This could be used with projected sales, real-time sales data, or both to assess how projections match reality. (Slide 15)
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