Dynamic pricing allows a seller to
A) Always charge the highest price.
B) Move prices up when demand is high, and lower prices for a similar product when the demand is low.
C) Keep the same price no matter what happens with demand.
D) Change prices when the quantity supplied changes.

Question

Quizplus · Accepted Answer

Dynamic pricing allows sellers to adjust their prices based on demand, which can help maximize revenue and profit. By raising prices during periods of high demand and lowering them during periods of low demand, sellers can better align their prices with what customers are willing to pay. It is not always about charging the highest price but rather the optimal price for maximizing revenue. Keeping the same price no matter what happens with demand is not dynamic pricing. Similarly, changing prices when the quantity supplied changes is not the same as dynamic pricing, as it does not necessarily take into account demand.

Dynamic Pricing Allows a Seller to