If a food company has vegetables and ice cream in its stable of products, which one should get a price increase? Also mention the reason...

PRICING DEPENDS UPON PERISHABLE NATURE OF GOODS--

HERE IT  IS FRUITS AND ICE CREAM

IF IT IS DATES--YOU PRICE MORE FOR ICE CREAM

Vegetables & ice cream –2 unrelated food groups (Vegetable group & Dairy group). The price increase in one shall not really affect the other as they are non-competing categories.

Usually, supply and demand are2 major factors on the basis of which pricing is done.

Other factors considered are

Purchasing cost of the product, Competing products and Positioning of the product (The price a company sets influences the way consumers view the company and the quality of its products.)

It is a very tricky question that may have several answers.

Answer1:

You cannot increase price of vegetables as you can't keep it for long, Keep the price low in order to sell it quickly. Ice cream can be kept freezer, so you are not in a hurry.

Answer2:

Keeping Ice cream in the freezer costs you money, sell it before the costs get high, so you can't increase the price. While vegetables are a moving product, so you don't pay much cost.

Answer3:

In the summer, people buy much Ice cream, so you can increase price, but vegetable can't hold for long and you can't keep it in the frig because that costs money.