3 ms·
Demand curves sadly are notoriously nonlinear: -If priced low, more will buy... unless it's TOO low, then the product is junk -If price high, fewer will bu
by wikwocket 14y ago
Demand curves sadly are notoriously nonlinear:
-If priced low, more will buy... unless it's TOO low, then the product is junk
-If price high, fewer will buy... unless it is VERY high, then the product
must be a luxury item, hand-crafted out of artisan materials!
And demand will vary with seasons, holidays, work schedules, school schedules, the stock market, the phase of the moon, the price of tea in China, etc.
Fortunately you can get around time-based fluctuations with A/B testing. There are theories about how to learn the demand curve (see Van Westendorp's price sensitivity meter), but they are theories only.