Top Posters
Since Sunday
r
4
L
4
3
d
3
M
3
l
3
V
3
s
3
d
3
a
3
g
3
j
3
Home Q & A Board Other Fields Homework Help Business Economics
New Topic  
david fabos david fabos
wrote...
Go to Answer
Posts: 498
Rep: 13 0
5 years ago
An article on how hotel prices rose during the solar eclipse on August 21, 2017 noted that in Hopkinsville, Kentucky: "At the local La Quinta Inn & Suites, prices are $425 a night, up from a $93 average on Google for the weekend before."
Source: David Gernon, "Once-in-a-lifetime solar eclipse is a bonanza for hotels, airlines," cnbc.com, July 27, 2017.

Which of the following statements is true?

• The La Quinta Inn & Suites is practicing first-degree price discrimination by charging what the market will bear.

• This is evidence of third-degree price discrimination because hotel accommodation on a particular day is not a product that can be resold later.

• There is no evidence of price discrimination; the La Quinta Inn & Suites is responding to increased demand for hotel rooms in the face of constant supply.

• The La Quinta Inn & Suites has adopted this pricing strategy to capitalize on arbitrage profits.
Textbook 
Microeconomics

Microeconomics


Edition: 7th
Authors:
Read 204 times
3 Replies
all is normal
Replies
Answer verified by a subject expert
DoggggDogggg
wrote...
#1
Posts: 400
Rep: 60 0
5 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

david f. Author
wrote...
#2
5 years ago
Thanks
all is normal
wrote...
#3
4 years ago
Nice work!
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1583 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 185
  
 826
  
 131