All for Fun is a retail store that offers a variety of board games, magic cards, and other collectible items and caters to teens and adults who enjoy strategy-based games. The store has over 12,000 magic cards and utilizes a sophisticated computer system to identify the value of each card. All for Fun determines the rarity of a given card and adjusts prices according to how much money customers are likely to pay for a particular card. Cards that are in limited production or considered "rare" are more expensive than cards that are widely available. Thus, the price for a single magic card might vary between $25 and $50 or more per card depending on the market. What type of pricing is All for Fun utilizing?
A)Demand-based pricing
B)Markup pricing
C)Cost-plus pricing
D)Competition-based pricing

Question

Quizplus · Accepted Answer

All for Fun is utilizing demand-based pricing, where the price is set according to what customers are willing to pay for a particular item. The store adjusts prices based on the rarity and demand for each magic card, resulting in prices that vary depending on market conditions. Markup pricing and cost-plus pricing involve adding a fixed percentage or amount to the cost of a product, respectively, and are not applicable in this scenario. Competition-based pricing involves setting prices based on what competitors are charging, but there is no mention of this strategy being used by All for Fun.

All for Fun Is a Retail Store That Offers a Variety