Which pricing model allows users to pay only for the resources that are consumed based on application demand?

The pay-as-you-go model is designed specifically to allow users to pay only for the resources they consume, aligning costs directly with application demand. This model is particularly beneficial for businesses that experience fluctuating usage levels, as it provides the flexibility to scale resources up or down based on real-time needs without incurring unnecessary costs.

In this model, users avoid upfront costs and can manage their budgets more effectively by only paying for the services and resources they actively use. This is in contrast to fixed pricing models like flat-rate pricing or subscription models, which charge a predetermined rate regardless of actual consumption. Additionally, while the freemium model can provide basic services for free and charge for premium features, it does not focus on consumption-based billing for core resource usage. Therefore, the pay-as-you-go model is the most suitable choice for managing costs associated with variable application demand effectively.