Dynamic pricing is typically used for pricing which of the following types of goods or services?

• A. Government-regulated utilities
• B. Airline tickets and hotel rooms
• C. Fixed-price retail clothing
• D. Basic grocery items

Answer: (B)

Verified step by step guidance

1. Understand the concept of dynamic pricing: it is a pricing strategy where prices fluctuate based on demand, supply, time, and other market factors.
2. Identify the characteristics of goods or services suitable for dynamic pricing: they usually have variable demand, perishable inventory, and the ability to adjust prices frequently.
3. Analyze each option: Government-regulated utilities often have fixed prices due to regulation, so dynamic pricing is uncommon.
4. Fixed-price retail clothing and basic grocery items typically have stable prices and less frequent price changes, making dynamic pricing less applicable.
5. Recognize that airline tickets and hotel rooms have perishable inventory (seats and rooms), highly variable demand, and frequently use dynamic pricing to maximize revenue.