The advantage of offering a price promotion during periods of low demand to shift some of the demand into a slow period is

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By offering a price promotion during periods of low demand, the firm can stimulate demand and shift some of it into a slower period. This means that the demand pattern becomes less volatile and more predictable. This reduces the need for expensive inventory costs and allows the firm to operate with a smaller, more efficient production facility. Additionally, the lower demand during slower periods means that much of the expensive capacity would go unused, so offering a promotion during these times is a smart business decision. Overall, this strategy helps reduce the cost of supplying the demand and provides a more stable supply chain.

The Advantage of Offering a Price Promotion During Periods of Low