oboloo Glossary

Demand Curve Economics

oboloo Glossary

Demand Curve Economics

Demand Curve Economics is a business model that focuses on consumer demand when it comes to pricing. Instead of relying on traditional market-based models, which tend to view prices as fixed entities, this approach revolves around how customers respond to price changes and the amount of demand they generate at each level. It allows businesses to maximize profits while still providing competitive pricing to their customers. By analyzing data from past transactions and trends in customer buying behavior, businesses can use demand curve economics to create an optimal price point for each product or service in order to maximize profits without sacrificing customer satisfaction.