A local retailer offers T-shirts at three price levels.Consumers can pay $6.99,$14.99,or $27.99 for the shirts.This pricing strategy is called price lining.

Question

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Price lining is a pricing strategy where a retailer offers products at different price points, typically with a small price difference between each option. This is done to appeal to different segments of customers with varying budgets or preferences. In this case, the retailer is offering T-shirts at three different price levels, which is an example of price lining.

A Local Retailer Offers T-Shirts at Three Price Levels