The practice of using dynamic pricing was started in the 1980's by American Airlines as an effort to compete with a now out-of-business discounter airline, People's Express. Dynamic pricing then moved to other industries, including hotels and car rental companies, but only became popular when e-commerce arrived. You are a consultant to a number of different organizations that use dynamic pricing, including American Airlines, St. Louis Cardinals, Coca Cola, and Marriott International. You are advising your clients of the use of dynamic pricing. Here are some questions that they have raised:

Which of the following statements about dynamic pricing is false?

Dynamic pricing is a pricing strategy where the price of a product changes frequently based on complex algorithms

A Revenue Optimization System is an industry example of dynamic pricing

Prices can go down as well as up

Using dynamic pricing, sellers and service providers monitor changes in prices of competitors' goods