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Why might you underestimate the increase in market quantity demanded when you lower your price? Some of your current customers may switch to a rival's
Why might you underestimate the increase in market quantity demanded when you lower your price? Some of your current customers may switch to a rival's product, so a drop in price doesn't produce any additional sales. You may not take into account potential new customers attracted by the lower price. Lowering the price only increases the quantity demanded for inferior goods. A price reduction increases the quantity demanded for individuals but not for the entire market
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