Dynamic pricing is a strategy where businesses set flexible prices for products or services based on current market demands. Prices are adjusted in real time as the demand for the product increases or decreases, or as competitor prices change.
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Market Demand: The total amount of a product or service that consumers are willing and able to purchase at various price levels at a given point in time.
An economic model that determines the price level of a good or service based on the quantity supplied by producers and the quantity demanded by consumers.