Suppose that a sports ticket-brokering company is considering using demand-based pricing as its pricing strategy. Which of the following is correct regarding demand-based pricing? The effectiveness of this method depends on a firm's ability to estimate supply accurately. A company may favor a demand-based pricing method called price differentiation if it wants to use one price in the marketing of a specific product. This method results in a higher price when product demand is strong. To use this method, a marketer estimates the amount of a product that competing businesses will supply at different prices and then chooses the price that should generate the highest total revenue