The pricing strategy that assumes that demand is relatively inelastic over certain price ranges is called
A) price lining.
B) odd-even pricing.
C) price skimming.
D) prestige pricing.
E) customary pricing.

Question

Quizplus · Accepted Answer

Price lining is a pricing strategy that assumes that demand is relatively inelastic over certain price ranges. In this strategy, the company sets a limited number of prices for its products or services, usually categorized by quality or features, and customers choose the price that best fits their needs or budget. This strategy is often used in retail businesses, such as clothing, where a limited selection of prices is offered to customers. Therefore, choice A is the best answer.

The Pricing Strategy That Assumes That Demand Is Relatively Inelastic