RVDondaPC on 07 January 2009
The demand curve is measured by the sales at each price point. Obviously you can't assume all things are equal like you do in theory as there are many external forces that can't be controlled, but it can be plotted. You can find the demand curve for the 360 with the sales of each SKU as it gets discounted. You can even attempt to look at the sales of the different SKU's and compare them but that would not be as accurate as the different SKU's offer different value. Many times products are put on sale just to see how well they sell at a certain point to get an understanding of the demand curve. Then the company can be better equipped to decide at what price point would they maximize profit.
