Hi folks, I've assigned a coursework weeks ago. The deadline is coming
Example we have Milo, Horlicks and Ovaltine
1) Can Nestle reduces production, make shortage thus the price rises and maximize the profit ? IDK ! Economists aren't scientists, individuals can't control that. In my country, maybe but still there're substitutes; Horlicks & Ovaltine.
2) Could other firms compensate for your shortfall and thus any expected profits? If the price is incredibly high,
3) Could a product from another firm effect the demand of your product? - I think they can, although Milo is kinda necessary in my country.
4) Does the knowledge of elasticity impact your firms pricing?
5) Build a presentation that illustrates the workings of the above in relationship to either a luxury or necessity product or service. How does it look like ?