All for Fun is a retail store that offers a variety of board games, magic cards, and other collectible items and caters to teens and adults who enjoy strategy-based games. The store has over 20,000 magic cards and utilizes a sophisticated computer system to identify the value of each card. All for Fun determines the rarity of a given card and adjusts prices according to how much money customers are likely to pay for a particular card. Cards that are in limited production or considered "rare" are more expensive than cards that are widely available. Thus, the price for a single magic card might vary between $25 and $50 or more per card depending on the market. What type of pricing is All for Fun utilizing?
A) Demand-based pricing
B) Markup pricing
C) Cost-plus pricing
D) Competition-based pricing

Question

Quizplus · Accepted Answer

All for Fun is utilizing demand-based pricing. They adjust their prices based on the customers' willingness to pay for a particular card. The rarity of the card and availability in the market also play a significant role in pricing. Thus, the store determines the price by analyzing the market demand and supply for magic cards.

All for Fun Is a Retail Store That Offers a Variety