Pricing · Demand sensitivity
Measure the response.
Test the price.
Use two comparable price-and-quantity observations to estimate demand elasticity and a cost-aware pricing scenario.
Marginal unit cost→Midpoint elasticity→Scenario optimal price
Scenario optimal price
$42.75Elasticity-1.73×
Optimal Quantity655 units
Optimal Profit$14,220.28
Initial Profit$14,000.00
Test Profit$14,200.00
Revenue Change$2,000.00
Planning estimate only. Verify actual tax rules, prices, cash-flow timing, exchange quotes, fees, and accounting treatment for your business.Calculation method
Estimate elasticity before extrapolating demand.
Midpoint elasticity compares percentage changes in price and quantity. When observed demand is elastic, the scenario price applies the standard marginal-cost elasticity relationship and extrapolates quantity with a constant-elasticity curve. Two observations do not establish a stable demand function. Seasonality, promotions, competitors, stockouts, channel mix, attribution, capacity, taxes, and changing costs can invalidate the estimate; test prices cautiously.