What type of pricing strategy is used in a situation where demand for a product is price inelastic and the seller has an ethical responsibility not to overcharge the client?
A)Price lining
B)Prestige pricing
C)Professional pricing
D)Customary pricing
E)Price skimming

Question

Quizplus · Accepted Answer

Professional pricing is a pricing strategy that considers ethical responsibilities and ensures fair pricing. In this situation, the demand for the product is price inelastic, meaning that changes in price do not significantly affect demand. Therefore, the seller can still charge a reasonable price without losing customers. Using professional pricing, the seller can maintain their ethical responsibility by avoiding overcharging the client while still making a fair profit. Price lining, prestige pricing, customary pricing, and price skimming are not appropriate for this situation as they do not necessarily consider ethical responsibilities and may result in overcharging the client.

What Type of Pricing Strategy Is Used in a Situation