Using ________, a company raises the price of its product as demand goes up and lowers it as demand declines.
A) price skimming
B) decoy pricing
C) surge pricing
D) keystoning
E) high/low pricing

Question

Quizplus · Accepted Answer

Surge pricing is a strategy used by companies to adjust the prices of their products or services based on the level of demand. When demand is high, prices go up, and when demand is low, prices go down. This strategy is commonly used by companies in the transportation, hospitality, and entertainment industries. For example, Uber uses surge pricing during peak hours, such as rush hour or on holidays, to encourage more drivers to go on the road and meet the high demand. By doing so, they can ensure a consistent level of service and earnings for their drivers.

Using ________, a Company Raises the Price of Its Product