Suppose that your team has bee

Suppose that your team has been hired by a high-tech, consumerelectronics firm to provide an economic analysis of how to pricethis new product in such a way that maximizes the company’sprofits. In today’s technologically driven world, there are somepeople who enjoy becoming the first adopters of a new product. Mostpeople, however, seem to hold back to see the development of theproduct before they jump in.

Are there any strategies that the firm can take so that they canfully use the knowledge of the relative elasticities? As a result,you will need to investigate what market separation is. Is thereany way that we can use market separation on the two markets andincrease revenues? In these sorts of markets, we might also seelagged demand and network effects. What sort of pricing strategiesdo firms have to follow when these conditions are present?


Yes. the firm can take up strategies o that they can fully usethe knowledge of the relative elasticities. The pricing strategybest suited for such a market is Peak Load Pricing. The consumerswho are first adopters of a new product have a demand curve whichis relatively less elastic as compared to the demand curve of theconsumers who hold back to see the development of the productbefore they jump in. The consumers who have a less elastic demandcan be charged a high price as compared to the consumers who have amore elastic demand of the product.

Market separation in the market can help to increase revenue ofthe product. Market separation can be done by using the strategy ofPeak Load Pricing mentioned in the paragraph above. Separatingmarkets by charging different prices to each set of consumers willhelp in increasing demand.

Lagged demand helps in formulating the elasticities of demand ofthe two consumers.This will help in setting prices in two types ofmarkets. In case of network effects, the demand of the productincreases as more and more people have more of the product. Thus,initially less price of the product can be charged and one thedemand of the product increases because of network effect, theprice of the product can be increased. Thus, different strategiesare used in different cases.

"Our Prices Start at $11.99. As Our First Client, Use Coupon Code GET15 to claim 15% Discount This Month!!"
Calculate the price
Make an order in advance and get the best price
Pages (550 words)
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Customer reviews in total
Current satisfaction rate
3 pages
Average paper length
Customers referred by a friend
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat

Sometimes it is hard to do all the work on your own

Let us help you get a good grade on your paper. Get professional help and free up your time for more important courses. Let us handle your;

  • Dissertations and Thesis
  • Essays
  • All Assignments

  • Research papers
  • Terms Papers
  • Online Classes