If demand for a class of products is elastic at a number of price points but is inelastic between these price points, which pricing approach should be chosen?
A) product-line pricing
B) skimming pricing
C) penetration pricing
D) price lining
E) odd-even pricing

Question

Quizplus · Accepted Answer

Price lining involves setting different price points for products in a line, which can effectively capture consumer surplus when demand elasticity varies between price points.

If Demand for a Class of Products Is Elastic at a Number