Chapter 5 reflection

When consumers become habitual purchasers of a product, the cross price elasticity of demand against rival products will decrease.

This makes demand less sensitive to price. The result is that firms may be able to charge a higher price, increase their total revenue and achieve higher profits.

Today i went to Lowes , and did find multiple items on sale such as washer, dryers and refrigerators. I did see that some of these items were on sale and some that were not on sale. If I had to do a better job with pricing and display I would leave the layout of refrigerators and washer and dryers. I would have them put from lowest to highest (Price) , then have my sales items in there own section.

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