What Type of Pricing Strategy Is Used in a Situation

question 118

Multiple Choice

What type of pricing strategy is used in a situation where demand for a product is price inelastic and the seller has an ethical responsibility not to overcharge the client?

• A)Price lining
• B)Prestige pricing
• C)Professional pricing
• D)Customary pricing
• E)Price skimming

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Definitions:

Future Event

An occurrence or situation that is expected to happen at a future date, often considered in planning and forecasting.

Past Event

A situation or occurrence that has already taken place.

Relevant

Pertaining to decision-making, it refers to information or costs that will change as a result of a decision, thereby affecting the outcome.

Total Cost

The sum of all expenses associated with the production or provision of goods and services, including fixed and variable costs.