The ability to make sound pricing policy decisions is an essential part of successful pricing.

(a) Describe how pricing policy decisions differ from price-setting decisions.

(b) Describe how a flexible pricing policy differs from a fixed-price policy. Thinking of the long history of human commerce, which of these two pricing policies was in wide usage first? Give an example to illustrate your answer on this which-came-first question.

(c) Give an example of automated flexible pricing and an example of flexible pricing that is not automated. Make clear which is which.

(d) Give an example of flexible pricing that is interactive and an example of flexible pricing that is not interactive. Make clear which is which.

(e) Describe the benefits of flexible pricing. Then describe a possible disadvantage of flexible pricing.