An American West Airlines flight from Dallas to Houston was fully booked, and the flight tickets were more expensive than that of the nearly empty American West flight from Chicago to Phoenix. This is an example of service pricing.
A) unit-based
B) demand-based
C) supply-based
D) cost-based
E) customer-based

Question

Quizplus · Accepted Answer

This is an example of demand-based pricing, where prices are set based on the demand for the service. The higher price for the fully booked flight reflects higher demand compared to the nearly empty flight.

An American West Airlines Flight from Dallas to Houston Was