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What is the relationship between price elasticity and demand forecasting?

April 26, 2017Advertising Business DEMAND elasticity Finance forecasting Marketing price relationship

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What is the relationship between price elasticity and demand forecasting?

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Demand forecasting is just being able to predict the demand. Price elasticity is the range of which people are willing to pay. If you are able to predict demand correctly, you can figure out the range that people are willing to pay for it due to the price elasticity. Then you can set the price at which people are will to pay the most at and you can make the most profit, that’s the relationship between the two. Hope that helps.