eli5 how do people find the sweet spot between supply and demand when pricing things?

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is there an actual formula companies use to calculate what the perfect price of an object should be?

In: Economics

13 Answers

Anonymous 0 Comments

If it isn’t moving, lower the price. If it’s selling out, raise the price.

If you have a free marketplace with enough sellers all doing this, prices will auto-adjust across the whole market relatively efficiently, without needing any fancy formulas.

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