Zoruski Inc. ,a manufacturer of leather furniture,is facing problems with pricing its products in the Asian market.Due to the presence of several middlemen in its distribution channel,the prices of furniture rise up to three times from what they are sold at in the home market.This problem faced by Zoruski Inc.is typically referred to as _____.

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Price escalation is the phenomenon where the prices of goods increase as they move from the manufacturer to the consumer, due to the addition of various middlemen and their profit margins. This is the problem faced by Zoruski Inc. in the Asian market, where the prices of their furniture are three times higher due to middlemen in their distribution channel. Price discrimination is when different prices are charged for the same product to different customers, price bundling is when two or more products are sold together as a package for a single price, and loss leaders are products sold at a loss to attract customers to buy more profitable products. None of these definitions apply to the situation faced by Zoruski Inc.