Pricing is controlled by the manufacturer or producer of the

Pricing is controlled by the manufacturer or producer of the product or service. The manufacturer or producer understands the competition (competitive activity), the consumer, and its own company requirements.  

Please discuss a product whose price you have seen change in response to its competition. 

How did the price change?  

Did the price change seem to result in favorable business results? Details are important.

My product would be Gas

Solution

I think gas is not correct choice. This is because gas is byproduct of crude oil . Crude oil is regulated by a group of member countries OPEC. So OPEC countries form a cartel and tries to monopolise the oil market by reducing the output and raise the price.

I would suggest you to take example from competitive industry. This could be air ticket, price of wheat etc.

Looking into air ticket market. There are large number of sellers . Competition in market force the sellers to charge a price such that they out do other sellers and lure more consumers. Price in this industry changes according to the prevailing codition, competition in ondustry etc.

Price change will give favourable result to sellers because each firm will try to outdo other in order to earn maximam profit. So if someone is able to undercut its price to an xetent that it captures whole market then it will earn profits at the cost of other sellers in industry.

** Please look into this .