Question

In the case files section, four people pay a different price for the same digital music player? Why do the prices they paid differ? Explain the factors that affected each person's ultimate cost for the music play.

Answer 1

The price difference in the purchase of the same music player depends on the factors that affects prices of goods which are:

• demand level
• sensitivity of price
• competition in the market
• Government regulations
• marketing methods used

Step-by-step explanation:

demand level: the demand level of the music player might be different for each consumer and this can affect how willing a consumer will be to pay for the player at a particular price

sensitivity of price: The higher the price gets, the likely a consumer will not be willing to buy

competition in the market: If there are other competitors in the market offering same product it can also affect the price at which a particular customer will be willing to buy

Government regulations: The imposing of tariffs on music player in a particular region will also affect the price of the product for a consumer

marketing methods used: The methods by the company to promote its products can affect the prices adversely or positively

Answer 2

This will be based entirely on the store's accessibility of the CDs, location, and demand of the CD's. With regards to accessibility, these would include transportation, communication, and source. These can be all different from the situations of each store that can affect the prices of CD's