Certain items those with that hard to define quality called exclusivity have the odd property, when they become avail...

helencburton000 May 12 at 11:23PM

Please help

Please tell me why this sentence: "any error in the initial asking price is in the direction of setting the price too high." Is saying to error on the side of caution and set the price too high. I am so confused by this stimulus.

Create a free account to read and take part in forum discussions.

Already have an account? log in

Nate-Stein September 30 at 10:55AM

@helencburton000, thank you for your question,

We are told "rare things sell fast, no matter how high the price is" and also "in fact, setting a low price actually makes the items seem less rare" which makes them less likely to sell. It is a bit of a paradox.

So, the stimulus says, "if you are not sure where to set the price on a rare item, opt for setting it TOO HIGH rather than TOO LOW" and you'll have a better result (better sales, aura of exclusivity)

Hope that helps and happy studying,
Nate, LSATMax Instructor