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 ...

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