Chapter 81. Pricing Products by Using Subjectively Determined Demand

Questions answered in this chapter:

  • Sometimes I don’t know the price elasticity for a product. In other situations, I don’t believe a linear or power demand curve is relevant. Can I still estimate a demand curve and use Solver to determine a profit-maximizing price?

  • How can a small drugstore determine the profit-maximizing price for lipstick?

Answer to This Chapter’s Questions

Sometimes I don’t know the price elasticity for a product. In other situations, I don’t believe a linear or power demand curve is relevant. Can I still estimate a demand curve and use Solver to determine a profit-maximizing price?

In situations when you don’t know the price elasticity for a product or don’t ...

Get Microsoft® Excel® 2010: Data Analysis and Business Modeling now with O’Reilly online learning.

O’Reilly members experience live online training, plus books, videos, and digital content from 200+ publishers.