17. a manufacturer decreases the amount of product in a package but keeps the price the same. what effect…
17. a manufacturer decreases the amount of product in a package but keeps the price the same. what effect does this have on the unit price of the product? explain your reasoning.
Answer
Brief Explanations:
When the amount of product in a package decreases while the price remains the same, the unit price (price per unit of product, e.g., price per ounce, per gram etc.) increases. This is because the same total price is now being charged for less of the product. For example, if a 10 - ounce package costs $5, the unit price is $0.5 per ounce. If the package is reduced to 8 ounces but still costs $5, the unit price becomes $0.625 per ounce.
Answer:
The unit price of the product increases.