Which pricing policy would probably be best for a profit-oriented producer introducing a really new product with a very inelastic demand curve?
A) Skimming pricing
B) Meeting competition pricing
C) Below-the-market pricing
D) Penetration pricing
E) Introductory price dealing

Question

Quizplus · Accepted Answer

Skimming pricing is the best choice for a profit-oriented producer introducing a really new product with a very inelastic demand curve. Skimming pricing involves setting a high price for a new product during the introduction stage to make maximum profits from each unit sold to the target market. With an inelastic demand curve, consumers are willing to pay a premium for the new product, and the producer can capitalize on this by setting a high price. As the product becomes more widely adopted and competition increases, the producer can lower the price to attract more price-sensitive consumers.

Which Pricing Policy Would Probably Be Best for a Profit-Oriented