In the hurdle method of price discrimination, a seller gives a lower price only to those who are price sensitive by choosing a discount pattern so that every fifth or 100th (or whatever chosen frequency) customer receives a discount. O identifying those who are price sensitive by the goods they buy and then discounting those goods only. O requiring price-sensitive buyers to do something extra to get a lower price. O identifying a characteristic of those who are price sensitive and giving that group discounts.

In the hurdle method of price discrimination, a seller gives a lower price only to those who are price sensitive by choosing a discount pattern so that every fifth or 100th (or whatever chosen frequency) customer receives a discount. O identifying those who are price sensitive by the goods they buy and then discounting those goods only. O requiring price-sensitive buyers to do something extra to get a lower price. O identifying a characteristic of those who are price sensitive and giving that group discounts.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Which of the following is NOT one of the three steps to take in segmenting customers into groups? O Charge higher prices to groups with more elastic demand. Divide the consumers into groups whose demand differs. Give discounts to chosen groups based on identifiable characteristics. Base discounts on characteristics that are hard to change.
A price-discriminating company can attract more customers by _ price, as long as reducing; the price is above marginal benefit and below marginal cost raising; the price is above marginal benefit and below marginal cost O reducing; the price is above its marginal cost raising; new customers are convinced to pay the price
This question has two parts. 1. 2. List two conditions required for price discrimination to take place. No need to explain, just list two conditions separtely. How do income effect influence work hours when wage increases? Be specific and write your answer in one line or maximum two lines.
Which of the following is not a function of elasticity in the real world? O It gives a signal to the producers if there is an incentive for price changes in any area. It is an indicator of the possible changes in prices of a customer, given a demand in an area. O It is an indicator of the product-market fit of a specific product or service, as indicated in the income of an area overtime. O It is an indicator of the possible changes in producer's changes in supply in an area given price changes.
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Please explain each option in details with step by step proper answer . Thank you . Which of the following is the best evidence that indirect price discrimination can work in the rental car simulation? Choose the best answer. A. 37% of weekday renters are leisure renters B. 4% of business renters rent on weekends. C. 63% of weekday renters are business renters. D. 51% of leisure renters rent on weekdays .
Peaks & Valleys Co. serves customers in two towns, Abovely and Belowing. Residents of Abovely have demand function QA = 220 - 4PA. Residents of Belowing have demand function QB = 18 - 0.2PB. The total cost of serving Q = QA + QB consumers is C = 10Q. Who has more elastic demand at a given price, Abovely or Belowing residents, and whom would you expect to pay the higher price based on the elasticities if P&V price discriminates? Abovely residents have more elastic demand, and therefore will pay less. Abovely residents have more elastic demand, and therefore will pay more. Belowing residents have more elastic demand, and therefore will pay less. Belowing residents have more elastic demand, and therefore will pay more.
Which of the following statements about price discrimination are true? Choose one or more: A. One example of price discrimination is Subway charging more for its footlong subs than for its 6-inch subs. B. One example of price discrimination is a movie theater charging a lower price for a 2:00 PM movie than it charges for the same movie at 8:00 PM. C. One example of price discrimination is a restaurant that provides a "senior discount" to people over age 50. D. Price discrimination usually leads to higher total surplus than single-price monopolies, and it can even maximize total surplus. a
Josh operates a funeral service business. He is able to sell coffins to his clients. In this situation: 1. price discrimination is not possible. 2. price discrimination is possible because Josh can discover a client's willingness to pay. 3. price discrimination is possible as Josh could sell the same coffin to different groups of customers at different prices. Which of the above statements are true: Only 1 is true. Only 2 is true. Both 1 and 2 are true. Both 2 and 3 are true. All three are true.
Explain the first degree of the price discrimination in the economy?
4) Provide a real-world example of third-degree price discrimination (with a hyperlink to the example. The page you link to should be in English). Discuss what prevents re-sale in your example (i.e. why can't people who pay a lower price sell the good to people who face a higher price?).