Chapter 89
Estimating a demand curve
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 an 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 90, “Pricing products by using tie-ins,” and Chapter 91, “Pricing products by using subjectively determined demand,” describe some simple models that might aid you in pricing a product to maximize profitability. This chapter discusses the concept of the demand curve, which factors into pricing.
Simply put, a demand curve tells you the number ...
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