Explanation:

Demand-based pricing comes in a variety of forms — all united by the fact that they play on consumer demand. These methods can vary based on several factors, including a company's business goals, its place in its market, consumer preferences, and the quality of its product.

The specific demand-based pricing method a company will employ also relies on how and when a company enters its market. Generally speaking, original innovators won't apply the same methodology as those that make a budget-friendly alternative.