Airlines offer lower prices to vacationers than to business travelers because
A) of government regulations requiring them to do so.
B) business travelers do not care at all about costs.
C) business travelers are less flexible in their travel plans than vacationers are.
D) airlines know that business travelers enjoy flying more than vacationers do.
Question 2
Coupons represent a form of price discrimination because they offer a low-cost way for firms to
A) identify customers with apparently more elastic demand and offer them a lower price.
B) retain loyal customers who are not price sensitive.
C) offer discounts to consumers who buy larger quantities.
D) perfectly price discriminate.
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