Zephyr Professional Practice Test

Which statement best describes elastic pricing?

1. It ties costs to actual usage

2. It uses a flat rate for all users

3. It charges based on company size

4. It avoids usage based billing entirely

The correct answer is: It ties costs to actual usage

The statement that elastic pricing ties costs to actual usage accurately reflects the essence of this pricing model. Elastic pricing is designed to adjust costs based on how much a service or product is actually used. This approach allows customers to pay only for what they need, making it particularly flexible and suitable for varying levels of consumption. For example, in cloud services, users often encounter elastic pricing as they can scale their resources up or down based on demand, which directly impacts their billing. This means that during periods of high usage, costs will be higher, while during low usage times, costs decrease correspondingly. This model is beneficial for both service providers and customers, as it aligns pricing with actual consumption and can encourage more efficient use of resources. The other statements do not accurately describe elastic pricing. A flat rate for all users does not take into account individual consumption, while charging based on company size would imply a more static pricing structure. Additionally, avoiding usage-based billing entirely contradicts the fundamental concept of elastic pricing, which is deeply rooted in adjusting costs according to usage levels.