A price-skimming strategy assumes that A) the initial demand is ...

[CORALGRILL2014]

A price-skimming strategy assumes that
 A) the initial demand is highly elastic.
  B) the product is efficient.
  C) it will be difficult to recoup development costs.
  D) all consumers have homogeneous tastes.
  E) the initial demand is highly inelastic.

Question 2

When Sharp first introduced its line of graphing calculators, it set the price quite high; it has lowered the price as competitors have entered the market. The pricing strategy initially used by Sharp is called
 A) customary pricing.
  B) odd-even pricing.
  C) penetration pricing.
  D) price skimming.
  E) prestige pricing.

[Benayers]

Answer to Question 1

E

Answer to Question 2

D