Economics · Pricing Strategies
A company has entered two different new markets. In market A, it is initially charging low prices so as to gain rapid market share while demand is relatively elastic. In market B, it is initially charging high prices so as to earn maximum profits while demand is relatively inelastic. Which price strategy is the company using in each market?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Price skimming in market A and price discrimination in market B
- 2Price skimming in market A and penetration pricing in market B
- 3Price discrimination in market A and penetration pricing in market B
- 4Penetration pricing in market A and price skimming in market B✓
Correct answer
Penetration pricing in market A and price skimming in market B
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