Perdue sells some $40 million of the otherwise valueless by-product to china annually. This is an example of demand pricing.
The cost that consumers are prepared to pay for goods and services when a specific quantity or volume is offered: The amount produced often rises when the demand price exceeds the supply price.
First, it can assist you in raising margins in line with rising demand. By boosting the likelihood that certain of your fixed inventory, such as airline tickets, will still be available when the departure date draws near, it can also help you maintain superior customer service.
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