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If a company sets its price too low for a product or service, or reduces its unit selling price, demand and thus, sales of the
If a company sets its price too low for a product or service, or reduces its unit selling price, demand and thus, sales of the product or service will increase immediately. customers will most likely not be affected by a change in the unit selling price. customers may not purchase the product or service due to perceived decrease in value. customers will purchase the product or service immediately assuming that the unit selling price cannot decline any further
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