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Determine the Theory of Exchange and Price Theory
Theory of Exchange is commonly called Price Theory. Price determination under various types of market conditions comes under thewingspan of this theory. It assist in determining the level to which an advertisement can be used to boost market sales of a firm. Price theory is essential in determining the price policy of a firm. Pricing is asignificant area in managerial economics. Accuracy of pricing decisions is vital in shaping the success of an enterprise. Price policy impresses upon the demand of products. It includes the determination of prices under various market conditions, pricing policies, pricing methods, differential pricing, price forecasting andproduct line pricing.
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