floataway tours managers think that silverbird is a popular boat type with the customers and they prefer to buy at least one Silverbird boat. How should the expected profit from a silverbird boat be increased so that the managers can justify buying this boat type?

Question

Business

Murphy

4 November, 05:14

floataway tours managers think that silverbird is a popular boat type with the customers and they prefer to buy at least one Silverbird boat. How should the expected profit from a silverbird boat be increased so that the managers can justify buying this boat type?

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Answers (1)

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Sierra · Answer 1

Since the boat is already popular, the managers should try to apply law of demand on a high demand product.

The lower the price, the higher the demand.

the managers should decrease the price a little so to sell more quantity and have customers buy atleast two.

Explanation:

the lower the price, the higher the demand

high demand tends to result in high prices if supply remains the same.