A company that raises its prices is most at risk of being accused of which of the following?
A) high-low pricing
B) price gouging
C) predatory pricing
D) price discrimination
E) retail price maintenance

Question

Quizplus · Accepted Answer

Price gouging refers to charging excessively high prices for goods or services during a time of crisis or emergency, which can lead to accusations of taking advantage of vulnerable consumers. Raising prices without a valid reason could be seen as price gouging and damage the company's reputation. High-low pricing refers to alternating between high and low prices to create a sense of value for consumers. Predatory pricing involves setting prices low to drive competitors out of business, while price discrimination refers to charging different prices based on the customer's willingness to pay. Retail price maintenance refers to setting a minimum price that resellers must adhere to.

A Company That Raises Its Prices Is Most at Risk