Uber Uses a Pricing Strategy Based on Real-Time Market Conditions

Multiple Choice

Uber uses a pricing strategy based on real-time market conditions. It charges less in periods of low demand and more during periods of high demand. Sometimes these prices double or triple during periods of high demand. Uber argues that these higher prices motivate more drivers to pick up passengers, thus increasing the supply of drivers needed to handle the additional demand. This demand-based pricing strategy is an example of

A) special-event pricing.
B) penetration pricing.
C) dynamic pricing.
D) cost-plus pricing.
E) reference pricing.