METHODS OF PRICING ACCORDING TO THE LAW OF DEMAND ANDSUPPLY. THE CONCEPT OF ELASTICITY AND ITS TYPES

Abstract

This article explores the methods of pricing based on the laws of
Demand and Supply, analyzing the interaction between consumer behavior and market equilibrium. It examines key pricing strategies such as market equilibrium, demandbased price stratification, competition-based pricing, skimming, and market penetration. Furthermore, the article elucidates the concept of elasticity (both demand and supply), the Giffen effect, and Engel’s law, highlighting their significance in the formation of market prices and the allocation of economic resources.