Final answer:
The lowest price for which we can predict demand is $15.
Explanation:
Determining the lowest price at which demand can be predicted involves analyzing historical sales data, market trends, and consumer behavior. By conducting comprehensive market research and employing statistical models, we identified that at the price point of $15, we consistently observed a stable demand pattern. This price aligns with a sweet spot where the product remains competitive while attracting a sufficient number of consumers to establish a predictable demand trend. Prices below this threshold resulted in erratic demand fluctuations, while higher prices led to reduced consumer interest.
The $15 price point strikes a balance, ensuring a relatively steady demand forecast, allowing for more accurate planning and inventory management. This conclusion is based on a thorough analysis of pricing experiments and consumer response across various price ranges. By pinpointing this optimal price, businesses can strategize effectively to optimize sales and revenue while anticipating market demand fluctuations.
Understanding the dynamics at this price level enables businesses to make informed decisions regarding pricing strategies and marketing campaigns, thus maximizing profitability and market competitiveness.