Which statement describes how pricing changes with quantity in volume based tiered pricing?

Which statement describes how pricing changes with quantity in volume based tiered pricing?

• A. Pricing changes by tiers based on quantity
• B. A single price for all quantities
• C. Free tier for first units
• D. Price decreases with more usage without tiers

Answer: (A)

In volume-based tiered pricing, the price changes as you reach different quantity thresholds. You set tiers so that up to a certain quantity the price is one amount, and once you hit the next range the price changes, often becoming cheaper per unit as you buy more. This is exactly what the statement describes: pricing changes by tiers based on quantity. The other scenarios don't fit tiered pricing: a single price for all quantities isn’t tiered; a free tier for first units is a promotional element rather than the tiered structure; price decreases with more usage without tiers describes a continuous discount rather than discrete tiers.

In volume-based tiered pricing, the price changes as you reach different quantity thresholds. You set tiers so that up to a certain quantity the price is one amount, and once you hit the next range the price changes, often becoming cheaper per unit as you buy more. This is exactly what the statement describes: pricing changes by tiers based on quantity. The other scenarios don't fit tiered pricing: a single price for all quantities isn’t tiered; a free tier for first units is a promotional element rather than the tiered structure; price decreases with more usage without tiers describes a continuous discount rather than discrete tiers.