This topic contains a solution. Click here to go to the answer

Author Question: What is the price-quality effect and why is it important? What will be an ideal response? (Read 145 times)

Mr3Hunna

  • Hero Member
  • *****
  • Posts: 536

Question 1

Why do you think that rental car customers bear such a high tax burden?
 
  What will be an ideal response?

Question 2

What is the price-quality effect and why is it important?
 
  What will be an ideal response?



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

jasonq

  • Sr. Member
  • ****
  • Posts: 335

Answer 1

Airport customers, subject to the tax, do not live in the area and, hence, do not vote for local politicians. Thus, politicians are unlikely to suffer at the ballot box from such a tax. Revenues collected from this source also serve to reduce the burden placed on locals.

Answer 2

The price-quality effect describes a presumed relationship between ADR and its product quality. There should be a positive connection because quality generally commands a commensurately high price, i.e., top dollar for top facilities, amenities, and service.



Mr3Hunna

  • Hero Member
  • *****
  • Posts: 536
Both answers were spot on, thank you once again



jasonq

  • Sr. Member
  • ****
  • Posts: 335

 

Did you know?

Only 12 hours after an egg cell is fertilized by a sperm cell, the egg cell starts to divide. As it continues to divide, it moves along the fallopian tube toward the uterus at about 1 inch per day.

Did you know?

Medication errors are more common among seriously ill patients than with those with minor conditions.

Did you know?

All adults should have their cholesterol levels checked once every 5 years. During 2009–2010, 69.4% of Americans age 20 and older reported having their cholesterol checked within the last five years.

Did you know?

The highest suicide rate in the United States is among people ages 65 years and older. Almost 15% of people in this age group commit suicide every year.

Did you know?

Asthma-like symptoms were first recorded about 3,500 years ago in Egypt. The first manuscript specifically written about asthma was in the year 1190, describing a condition characterized by sudden breathlessness. The treatments listed in this manuscript include chicken soup, herbs, and sexual abstinence.

For a complete list of videos, visit our video library