Susan and Tullia are both buying back-to-school clothes for their children at a neighborhood thrift shop. Tullia has an income of $20,000, while Susan's income is less than $12,000. The thrift store will charge Tullia less for her children's clothes than it will charge Susan. What pricing strategy does this exemplify?

Question

Quizplus · Accepted Answer

The thrift store is using a flexible-price strategy, where the price of the same goods or services may vary based on factors such as the customer's ability to pay, negotiation, or other variables. In this case, the store adjusts prices based on the customers' income levels.

Susan and Tullia Are Both Buying Back-To-School Clothes for Their