Josie is a teenage girl who wants to start a jewelry-making business. Her target market is females, ages 10-14. What price should she charge per necklace that she sells?

Setting an appropriate price point for Josie's jewelry-making business is crucial for appealing to her target market of females aged 10-14. When considering the economic factors influencing this demographic, pricing between one and ten dollars makes sense for several reasons.

First, teenagers often have limited budgets, typically relying on allowances or small amounts of pocket money. A price range of one to ten dollars aligns with what most young girls in this age group can afford, making the jewelry accessible and enticing.

Secondly, this pricing strategy allows for impulse buying behavior, which is common among younger consumers. The lower price point can encourage parents to make spontaneous purchases for their children without worry about spending too much.

Additionally, positioning her product within this price range can help Josie attract a larger customer base. It enables her to appeal to not just those who might spend more, but a wider range of potential buyers who may just want to experiment with different styles and pieces of jewelry.

In contrast, higher price points would likely limit her customer base significantly. Many in her target market may not be interested or able to spend more than ten dollars, thereby reducing her potential sales volume. Thus, the chosen price point supports both consumer purchasing power and market accessibility.