When a firm uses surge or dynamic pricing,
A)it changes price in "real time" according to market demand.
B)consumers pay less during peak times.
C)the firm sets the price based on the previous day's demand.
D)it commits to a set pattern of pricing.

Question

Quizplus · Accepted Answer

Surge or dynamic pricing involves changing prices in real time based on market demand. This means that prices will be adjusted based on factors such as supply and demand, time of day, and even weather or traffic conditions. The goal is to optimize revenue by charging more during peak times and less during off-peak times.

When a Firm Uses Surge or Dynamic Pricing