Why Do Companies Raise Prices When Demand is High?

Examples

1. A toy becomes popular at Christmas time, the store raises its price because everyone wants it.
2. A cupcake shop sells out of their limited batch, they charge more for the next one.
3. An online game releases a new character, players are willing to pay extra for early access.

More examples

See also

• What are dynamic pricing models?
• What is demand?
• What are the laws of supply and demand?
• Why Do Companies Raise Prices When Demand Increases?
• Why Are Some Things Incredibly Expensive and Others Almost Free?

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