Which of the following choices is the practice of charging a higher price for the same product or service when demand approaches the physical limit of the capacity to produce that product or service?
A) Price discrimination
B) Peak-load pricing
C) Demand-based pricing
D) Customer preference pricing

Question

Quizplus · Accepted Answer

Peak-load pricing is the practice of charging a higher price for the same product or service when demand approaches the physical limit of the capacity to produce that product or service. This allows companies to maximize profits during times of peak demand. Price discrimination is the practice of charging different prices to different customers based on their willingness to pay. Demand-based pricing and customer preference pricing are not specific to capacity constraints and do not necessarily involve charging higher prices in times of high demand.

Which of the Following Choices Is the Practice of Charging