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
New Topic  
david fabos david fabos
wrote...
Posts: 498
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...
Posts: 400
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...
5 years ago
Thanks
all is normal
wrote...
4 years ago
Nice work!
New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers
  1583 People Browsing
Related Images
  
 185
  
 826
  
 131