Discussion
Which of the following is not a requirement under price skimming ?
Answer: B
A product does not have to be imported for price skimming.
Skimming sets a high initial price to collect revenue from the buyers who value a product most, then lowers it step by step. It works when the product is new and distinctive, has no close substitute so demand is inelastic, and carries prestige value, so that early buyers will pay a premium.
Where the product is made has nothing to do with it: home-produced electronics and medicines are often launched with skimming prices. The other three options are the conditions skimming relies on.
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