At the other extreme, where the strength of demand is low, and competition is strong, you would set LOWER prices. To assist you in making your pricing decisions, the company’s marketing research department has devised a rough measure of the market conditions for each of your products. This market index is on a scale of zero to 100. The upper end of the scale (towards 100) indicates high demand, weak competition, and the ability to set higher prices. The lower end of the scale (towards zero) indicates low demand, strong competition, and the need to set lower prices. 

An index of 50 indicates a product will have an average mark-up of 100%.