In a discussion on Facebook, people were complaining about the high prices of tickets to Major League Baseball Spring Training games. Due to continued concerns about the COVID-19 virus, teams are allowing only a small number of tickets to be sold to each game. According to one comment, “Unfortunately, the reduced supply of tickets has driven up the demand for tickets and so price has gone way up.” Explain whether this statement does or does not make good Economic sense: does a reduced supply drive up demand, leading to an increase in price?
Customary Pricing
There are various types of pricing strategies followed in the market. They are psychological pricing, odd pricing, free onboard pricing, customary pricing, prestige pricing, dual pricing, ruling pricing, negotiated pricing, mark up pricing, etc. each one can be explained as follows:
Multiple Unit Pricing
“Multiple-unit pricing is a practice where a company offers consumers a lower than unit price if a specified number of units are purchased.”
In a discussion on Facebook, people were complaining about the high prices of tickets to Major League Baseball Spring Training games. Due to continued concerns about the COVID-19 virus, teams are allowing only a small number of tickets to be sold to each game. According to one comment, “Unfortunately, the reduced supply of tickets has driven up the demand for tickets and so price has gone way up.” Explain whether this statement does or does not make good Economic sense: does a reduced supply drive up demand, leading to an increase in price?
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