price

Question 1

demand

Answer 1

as prices rise demand falls
cant set price too high

Question 2

internal factors affecting price

Answer 2

aims and objectives - if the aim is to gain more market share businesses are likely to set price lower than competitors - internal costs - place in product life cycle e.g. intro and growth phase product may be set at a very low or high price to attract sales

Question 3

external factors affecting price

Answer 3

nature of the market - high end market, prices will be high
costs of raw materials - business may not have control - if these go up then so will price