Question

7. Discuss some valid and some invalid objections to letting prices eliminate shortages of supplies of scarce resources.

Answer 1

Some valid and same invalid objects to letting objections to lettering prices eliminate shortages of supplies of scarce resources rightarrow the following are invalid objections for lettering price to rise rightarrow an increase in the price of scares resources leads to rise in the quantity supplied of pf rightarrow shortages are eliminated due to an increase in the quantity supplied rightarrow if the price of scare resource are allowed to rise then the quantity for those resources are likely to decline rightarrow therefore, storage created by excessive demand can be determined by letting the price to rise \r\n rightarrow the price objection as negotiating play to determine how much flexibility there in the object due to budget constraints rightarrow its best to always be prepared for price objection rightarrow price is what customer actually pays for the product or service that is determined the price rightarrow it is the value that customers assign to a product or service that determines the price