Delta Airlines prices its tickets so that it is less expensive to travel between midnight and 5:00a.m. than during the day, when there is heavy business travel. This illustrates ____ pricing.
A) cost-plus
B) demand-based
C) competition-based
D) secondary markup
E) seasonal

Question

Quizplus · Accepted Answer

Delta Airlines is using demand-based pricing by offering lower prices during times when there is lower demand (midnight to 5:00 a.m.) and higher prices during times when there is higher demand (daytime, heavy business travel).

Delta Airlines Prices Its Tickets So That It Is Less