3.4.4 Volume Sales
Completion requirements
The quest for profit influences selling prices and levels production (or volume of sales).
When demand increases, sellers may
The constant market adjustments towards equilibrium discourage sellers from simply increasing production and increasing price.
To increase sales regardless of production volumes or selling price, sellers may offer customers quantity discounts (such as buy two to get one free, or buy a truckload of facial tissue).
The more items sold, the greater the profit. By selling in greater volumes, storage, transportation and packaging costs can be passed to the customer.
When demand increases, sellers may
- increase production volume (think about fad items such as fidget spinners, hula hoops, or pet rocks); or,
- increase selling price (think about tickets to an NHL game or rock concert).
The constant market adjustments towards equilibrium discourage sellers from simply increasing production and increasing price.
To increase sales regardless of production volumes or selling price, sellers may offer customers quantity discounts (such as buy two to get one free, or buy a truckload of facial tissue).
The more items sold, the greater the profit. By selling in greater volumes, storage, transportation and packaging costs can be passed to the customer.
