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:

Wage

The fixed amount of money or compensation paid to an employee by an employer in exchange for work performed.

Lumber Prices

The cost or price of wood or timber, which can fluctuate based on factors like supply and demand, environmental regulations, and economic conditions.

Home Construction

The process of building residential structures, such as houses and apartments, often involving design, planning, and assembly of materials.

Demand

The total amount of a good or service that consumers are willing and able to purchase at a given price in a specified time period.