Questions answered in this chapter:
What do I need to know to price a product?
What is the meaning of elasticity of demand?
Is there any easy way to estimate a demand curve?
What does a demand curve tell us about a customer’s willingness to pay for our product?
Every business must determine a price for each of its products. Pricing a product properly is difficult. Chapter 84 and Chapter 85 describe some simple models that might aid you in pricing a product to maximize profitability. For further insights into pricing, refer to the excellent book, Power Pricing, by Robert J. Dolan and Hermann Simon (Free Press, 1997).
This section provides the answers to the questions that are listed ...