A convention hall has a standard rate of $500.00 an evening as a rental fee.However,during key holidays of the year (such as New Year's Eve),the rental fee per evening is $1,250.00.This is an example of:
A)experience curve pricing
B)cost-plus and fixed-fee pricing
C)yield management pricing
D)standard markup pricing

Question

Quizplus · Accepted Answer

This is an example of yield management pricing, where the price is varied based on demand and the time of year. The rental fee is higher during key holidays when there is an increased demand for the convention hall.

A Convention Hall Has a Standard Rate of $500