If the supply of a product in a market is limited, a company may follow a ________ approach to maximize revenue and to match demand to supply.

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Price skimming is a strategy where a company charges the highest initial price that customers will pay and then lowers it over time. When supply is limited, this approach helps maximize revenue by capturing the consumer surplus from different segments, starting with those willing to pay the most.

If the Supply of a Product in a Market Is