Sunday, November 8, 2009

Pricing: Demand and Supply

This wonderful cosmetic company is more of a demand only company. It's like the example in the chapter on page 265 that states,

" At a price of $3, the public would demand only 35 packages of gournment cookies. However, the suppliers stand ready to place 140 packages on the market at this price."

Their suppliers might stand ready to hold more cosmestics on the market considering that there are several more raw materials in cosmestics than food, such as oil, wax, gluetin, iodine, and bromine for the lips and many more ingredients. Mineral mica(for shine), titanium dioxide(for shine), goniochromism( for the color that appears), fish scales for the eyes and many more. As a result, having a higher demand in supply for other markets, and MAC's market itself.

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