Question

a games console sells for £350 a new model with advanced features is to be launched using price skimming it will be 35% more expensive than the old model what price will the new model sell for ?

Answer 1

To determine the new selling price of the game console which is 35% more expensive than the current £350 price, 35% of £350 is found (£122.50) and added to the original price, resulting in a new price of £472.50.

Step-by-step explanation:

The question involves calculating the new price of a games console using price skimming strategy. If the current console is priced at £350, and the new model is to be 35% more expensive, we must find 35% of £350 and add it to the original price to determine the new selling price.

To find 35% of £350, we can convert the percentage to a decimal (0.35) and multiply it by £350:

35% of £350 = 0.35 × 350 = £122.50

Adding this to the original price:

New Model Price = £350 + £122.50 = £472.50

Therefore, the new model will sell for £472.50 applying the price skimming method.