The Logistics of Demand Curves

Hello all, just wondering (I'm curious) something about demand curves. I've been studying economics for a while now but I want to know where they get the numbers to plot the curves from?

How do they know how many pizzas they would sell if they made the price £100? I'm sure nobody's ever tried it

Reply 1

someone_cat

10

most likely they would have sales data , or in some cases , firms would take surveys and studies from consumers , prediction graph and sth called PED - price elasticity of demand , which i reckon you would learn it in year 12 ? it means the responsiveness of demand to the change of price , so in your eg , if previous data suggest demand drops by 40% when the price double , they can predict what might happen at £100.

Reply 2

Sichwünschen

OP

11

Original post by someone_cat

most likely they would have sales data , or in some cases , firms would take surveys and studies from consumers , prediction graph and sth called PED - price elasticity of demand , which i reckon you would learn it in year 12 ? it means the responsiveness of demand to the change of price , so in your eg , if previous data suggest demand drops by 40% when the price double , they can predict what might happen at £100.

Thank you for explaining this :smile:

The Logistics of Demand Curves

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