8. Why would a firm want to offer pricing promotions in its peak-demand periods? If we assume that a pricing promotion serves to increase demand, then there are a couple of reasons a firm may offer pricing promotions during peak demand periods. Even at peak demand, the firm may have excess capacity and could meet this demand. The nature of the product and supply chain may be such that a promotion today results in an order that both the supply chain and customer recognize will be filled in the future, perhaps during an anticipated low demand period. If a firm produces a product that is at the end of its life cycle, there may be incentive to exhaust accumulated materials and labor skills that are dedicated to its production. Finally, a firm may be practicing a form of predatory pricing if it senses that a competitor, teetering on the brink of extinction, is starved for sales