1.

Explain any two factors affecting price of a product.

Answer»

Factors affecting the price of a product are the following:

i. Demand for Product: Intensive study of demand for product and services in the market be undertaken before price fixation. If demand is relatively more than supply, higher price can be fixed.

ii. Price of Competing Firms: It is necessary to take into consideration prices of the products of the competing firms prior to fixing the price. In case of cut-throat competition it is desirable to keep prices low.



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