Solve the equation.
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(Round to the nearest thousandth.)
Definitions:
Skimming Pricing
A pricing strategy involving setting high prices initially and then gradually lowering them to make the product available to a broader market.
Penetration Pricing
A pricing strategy where the price of a new product is set lower than competitors to quickly gain market share.
Skimming Strategy
A pricing tactic that involves setting a high price for a new product to maximize profits from segments willing to pay more, before lowering the price over time.
Price Insensitivity
A condition where the demand for a product is unresponsive or less sensitive to changes in its price.
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