Author Question: Which is not an example of price discriminating by separating markets? a. offering discounts for ... (Read 37 times)

dejastew · **on:** Jul 1, 2018

Which is not an example of price discriminating by separating markets?
a. offering discounts for students with IDs.
b. charging lower prices for airline tickets with a Saturday stay-over.
c. selling 13 bagels (a baker's dozen) for the price of 12.
d. selling snowblowers at a discount in relatively warmer climates.

Question 2

The Soup Nut serves his signature minestrone soup in two different bowl sizes, large and small. What strategy should he use to extract the most surplus possible out of customers who come in two types, regular and big eaters, when he cannot distinguish between the two types by observation?
a. Distort the size of the small bowl downward to make it less attractive to the big eaters, allowing him to raise the price of the large bowl.
b. Distort the size of the large bowl downward to make it attractive to both big and regular eaters.
c. Distort the size of the small bowl upward to make it harder for regular eaters to separate themselves from big eaters.
d. Distort the size of the large bowl upward to make big eaters less likely to consume the small bowl.