Final answer:
Varying a product's price according to the supply situation of the seller is called Dynamic pricing.
Step-by-step explanation:
Dynamic pricing is adjusting a product's price based on the seller's supply condition.. Dynamic pricing is a strategy where the price of a product or service can fluctuate based on market demand, competition, supply constraints, and other external factors.
This contrasts with menu costs, which are the costs associated with changing prices, such as the need for managers to analyse various factors before setting new prices and the resources spent on updating marketing materials and sales systems. Unlike menu costs, dynamic pricing is responsive and immediate, allowing companies to adjust prices rapidly as market conditions change.
A price ceiling will usually not shift the demand or supply curve directly; instead, it sets a legal maximum price but does not directly affect the position of the supply and demand curves. Similarly, a price floor establishes a minimum price and also does not shift demand or supply curves directly; rather, it can lead to surpluses if set above the equilibrium price.