This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: The Wells Fargo Bank Tower in downtown Los Angeles displays a sign at its parking entrance that ... (Read 89 times)

anjilletteb

  • Hero Member
  • *****
  • Posts: 569
on: Jun 30, 2018
The Wells Fargo Bank Tower in downtown Los Angeles displays a sign at its parking entrance that clearly shows that the per-hour parking charges are higher for people who visit the building for a short while. How is this consistent with the general principle of price discrimination?

Question 2

To practice price discrimination, a firm:
 a. must face a relatively elastic demand curve.
  b. must have customers with different elasticities of demand.
  c. must not be able to distinguish between customers based on elasticities of demand.
  d. must not be able to prevent resale of the product.
  e. must be a price taker.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

amynguyen1221

  • Sr. Member
  • ****
  • Posts: 355
Reply #1 on: Jun 30, 2018
Answer to Question 1

A document courier whose customers want quick pickup and delivery wants to stay for only the short time required to visit a customer's office. Even if a cheaper lot is only a block away, there will be a 15-minute round-trip walk to Wells Fargo. Hence he is an inelastic demander of space in this particular building and is willing to pay a higher price to save time.

Answer to Question 2

b


anjilletteb

  • Member
  • Posts: 569
Reply 2 on: Jun 30, 2018
Thanks for the timely response, appreciate it

ghepp

  • Member
  • Posts: 361
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

Though newer “smart” infusion pumps are increasingly becoming more sophisticated, they cannot prevent all programming and administration errors. Health care professionals that use smart infusion pumps must still practice the rights of medication administration and have other professionals double-check all high-risk infusions.

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates's recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Did you know?

The immune system needs 9.5 hours of sleep in total darkness to recharge completely.

Did you know?

The modern decimal position system was the invention of the Hindus (around 800 AD), involving the placing of numerals to indicate their value (units, tens, hundreds, and so on).

Did you know?

The familiar sounds of your heart are made by the heart's valves as they open and close.

A road sign telling drivers that there may be devils nearby A road sign telling drivers that there may be devils nearby
The Primate order displays a diversity of ways of moving around. The Primate order displays a diversity of ways of moving around.
Bank reconciliation form. Bank reconciliation form.
Offshore spawning stock biomass, Grand Bank Atlantic Cod since the early 1980s Offshore spawning stock biomass, Grand Bank Atlantic Cod since the early 1980s
A mother invests $9000 in a bank account at the time of her daughter's birth. The interest is ... A mother invests $9000 in a bank account at the time of her daughter's birth. The interest is ...
Video: What is an ecosystem?

For a complete list of videos, visit our video library