The practice of using dynamic pricing was started in the $1950/$s by American Airlines as an effort to eompete with a now out$-$of husiness discooster 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 organistions that use dynamic pricing. including American Airlmes, St$.$ Louis Cardinals, Coca Cols, 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 fals?

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

Dynamic pricing always results in prices going down.

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 dynamie pricing