assumption that demand is elastic at a number of price points but is inelastic between these price points leads to which pricing approach?
A) product line pricing
B) skimming pricing
C) penetration pricing
D) price lining
E) odd-even pricing

Question

Quizplus · Accepted Answer

Price lining involves setting a limited number of prices for a range of products. This approach is often used when demand is inelastic at certain price points but elastic at others. By offering a limited number of price points, the company can cater to different segments of customers and capture more of the market while maintaining profitability.

Assumption That Demand Is Elastic at a Number of Price