Certainly lowering prices increases demand, but by doing so, you lose profitability, and thus force other companies to lower their price as well. This triggers a price war.
No one wins a price war
I have seen many industries where all companies attempt to lower their price, to the point that no one makes money.
When this happens, the correction to this problem means the entire industry must raise their price, and unless the professor enforces that, it’s not going to happen.
Or create a niche
If you are in a price war, not every company is going to have the same strategy, and therefore you to figure out a compelling strategy for your cameras by creating a niche. Experiment with camera builds, prices, promotions, and compare net profits when you match assembly.
