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Discuss the decisions companies face when initiating price increases. Provide an example

Discuss the decisions companies face when initiating price increases. Provide an example

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The main challenges that the company had to face while initiating price increases is that companies to identify whether competitor sales would actually increase or not and also what would be the consumer behaviour towards the increase in price and particularly this means that the elasticity of demand if it is greater than one for another words if it is relative me elastic than the sales would drop by a good extent and then revenue will get decreased. For example for company like Pepsi price then think is a challenge that whether its competitor could increase in sales while decreasing the sales of Pepsi.

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