When the capacity reserved for higher price buyers is wasted because demand from the higher price segment does not materialize,this is
A)spill.
B)spoilage.
C)wastage.
D)excess.

Question

Quizplus · Accepted Answer

Spoilage occurs when a service or product cannot be sold at its intended price and goes to waste, particularly relevant in scenarios where capacity is reserved for higher-paying customers but the demand from that segment does not materialize, leading to unsold inventory or unutilized service capacity.

When the Capacity Reserved for Higher Price Buyers Is Wasted