The assumption that demand is elastic at a number of price points,but is inelastic between these price points leads to which approach to pricing?
A)target pricing
B)skimming pricing
C)penetration pricing
D)price lining

Question

Quizplus · Accepted Answer

Price lining is a strategy that involves setting different price points for different products within the same category. This approach is particularly effective when demand is elastic at different price points, but inelastic between them. By offering a range of products at different price points, businesses can capture a wider range of customers and increase their overall sales. Customers who are more price-sensitive can opt for lower-priced products, while those who are less price-sensitive can choose higher-priced options. This approach allows businesses to cater to a wider range of customers and increase their overall revenue.

The Assumption That Demand Is Elastic at a Number of Price