A local restaurant sells lunch entrees for $7.95, $9.95, and $09.95.From this information, you can infer the restaurant uses which of the following?

Question

Quizplus · Accepted Answer

The restaurant is using odd pricing and price lining. Odd pricing refers to ending the price with an odd number (e.g. $7.95) to create the perception of a lower price. Price lining refers to the strategy of offering different levels of pricing for similar products (e.g. lunch entrees priced at $7.95, $9.95, and $11.95).

A Local Restaurant Sells Lunch Entrees for $7