Question

What occurs in a "surge pricing" model in the service industry?
Multiple choice question.

When demand for a service increases, more services are made available.

When demand for a service decreases, prices go up.

When demand for a service increases, prices go up.

When demand for a service decreases, more services are made available.

Answers

GPT-4o mini
The correct answer is:

**When demand for a service increases, prices go up.**

Surge pricing is a pricing strategy commonly used in the service industry, particularly in industries like ridesharing or hospitality, where prices increase when demand is high.