Question

For an airline, the price of economy-class seats on any given flight may fluctuate over time. For example, the airline may try to fill economy-class seats by lowering the price as the day of the flight draws closer, or try to fill business-class seats first by raising prices on economy tickets. This is an example of

Answer 1

The correct answer is: Dynamic pricing

Step-by-step explanation:

Dynamic pricing, also known as demand pricing or surge pricing, is a type of pricing strategy used in a business. This strategy involves repricing and setting flexible prices based upon the real-time supply and demand of the various goods and services in the market.

It is a common strategy used in various companies such as travel, public transportation, entertainment, professional sports, hospitality, retail, and electricity.

Therefore, in the given example, the fluctuation in the price or repricing of flight tickets is an example of dynamic pricing.