Dynamic pricing is
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______.

Question

Dynamic pricing is 
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______.

BlackTom AI · Accepted Answer

The question presents a definition-style prompt for dynamic pricing and asks you to evaluate the given options.
Option 1: 'the practice of changing price in real time based on supply and demand' — This accurately captures the essence of dynamic pricing, which adjusts prices on-the-fly in response to market conditions such as supply and demand shifts.
Option 2: 'the lowest price available online at a specific time' — This describes a price search outcome or a price floor technique perhaps, but not dynamic pricing itself; dynamic pricing is about variability over time, not guaranteeing the lowest price at a moment.
Option 3: 'changing prices based on the collusion with competitors' — Collusion is illegal price-fixing and not what dynamic pricing refers to; dynamic pricing relies on data-driven signals rather than explicit collusion.
Option 4: 'the strategy used by consumers to shop online' — Dynamic pricing is an approach used by sellers, not a consumer shopping strategy; this option misconstrues who plays the role in the pricing mechanism.

Dynamic pricing is Blank ______.

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