A hotel room in New Orleans during Mardi Gras costs considerably more than it would during the following week. This is an example of
A) status-quo pricing.
B) cost-based pricing.
C) price differentiation.
D) variable pricing.
E) price adjustment.

Question

Quizplus · Accepted Answer

This is an example of price differentiation, where the hotel is charging different prices for the same room based on a variable, in this case, the time of the year (Mardi Gras vs. non-Mardi Gras period).

A Hotel Room in New Orleans During Mardi Gras Costs