When businesses charge the highest possible price that customers who really want the new product will pay,they are using
A) premium pricing.
B) prestige lining.
C) captive pricing.
D) price skimming.
E) penetration pricing.

Question

Quizplus · Accepted Answer

This scenario describes price skimming, where a business sets a high price initially to capitalize on the demand from early adopters who are willing to pay more for the new product. As demand decreases and the market becomes more saturated, the price is gradually lowered to attract a broader customer base.

When Businesses Charge the Highest Possible Price That Customers Who