Jackie has been selling beaded necklaces for $40 each, but very few people have

Question

been buying them. Her cost for the necklaces is $10 each. Should Jackie adjust her
price? How might this affect profits?

Answer 1

Yes, Jackie should consider adjusting her price. While selling the necklaces at $40 each may seem profitable with a $30 profit margin per necklace, the lack of sales means that she is not generating as much revenue as she could be. By adjusting her price to a lower amount, such as $30, Jackie may be able to sell more necklaces and increase her overall profits. It is important to consider consumer demand and pricing strategies in order to maximize profits in a competitive market.