Getcha-There-In-One-Piece Airline charges higher ticket prices for popular mid-morning departures and lower ticket prices for less popular late-night departures. Getcha-There-In-One-Piece Airlines is engaging in
A) product differentiation.
B) peak-load pricing.
C) intertemporal pricing.
D) bundling.

Question

Quizplus · Accepted Answer

Peak-load pricing is a strategy where prices are higher during times of high demand and lower during times of low demand. Getcha-There-In-One-Piece Airline's practice of charging higher prices for popular mid-morning departures and lower prices for less popular late-night departures is an example of peak-load pricing, as it adjusts prices based on the demand at different times.

Getcha-There-In-One-Piece Airline Charges Higher Ticket Prices for Popular Mid-Morning Departures