Course Name: Pricing Strategies (Please answer this question with proper explanation and clear format)

Q1.Cost plus pricing is the most common pricing mechanism. During the current covid-19 situation and associated lockdowns, cost plus pricing resulted in increased pricing for most of the essential purchases. Can these current prices be sustained for long, even after the supply chain related issues improve? Identify the problems associated with cost plus pricing and explain these problems with suitable examples in the current covid-19 situation. (6 Marks)