A company has entered into two new and different markets. In market A, it is initially charging low prices, to gain rapid market share while demand is relatively elastic. In market B, it is initially charging high prices, to earn maximum profits while demand is relatively inelastic.

Which price strategy is the company using in each market?

Market A = Price discrimination; Market B = Penetration pricing

Market A = Price skimming ; Market B = Price discrimination

Market A = Penetration pricing; Market B = Price skimming

Market A = Price slimming; Market B = Penetration pricing