Price skimming is charging the highest possible price that buyers who most desire the product will pay.

Question

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Price skimming involves charging a high price for a product with unique features or benefits to attract early adopters and generate high profits before competitors enter the market. This strategy is effective when the product is in high demand and buyers are willing to pay a premium price for it. Eventually, the price is lowered to attract more price-sensitive customers.

Price Skimming Is Charging the Highest Possible Price That Buyers