A volume crisis means that a company sells fewer units at the same price. But by no means is the opposite true: it does not mean that a company can sell the same number of units as before if it cuts its prices. That is a grand illusion which is rarely fulfilled. Why is that true? There are two reasons. First, the crisis has altered the demand curve , shifting it downward, which means that a company doesn’t sell as many units as it used to at a certain price. The previous demand curve no longer applies. Second, price cuts or steeper discounts do not yield the desired upturn in sales , because
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