Itqualityassurance
How does price of a product affect sales?
In simple terms: a price reduction will likely bring new customers or sales. A price increase, on the other hand, causes customers to buy less product, meaning you're losing sales.
How does price affect sales volume?
The law of demand states that for nearly all products, the higher the price, the lower the demand (Zamry & Nayan, 2020). In other words, sales will fall if prices are put up. However, higher prices can also mean higher profits.
