HotwireCom,an Online Travel Company Specializing in Cheap and Discounted Hotel

question 28

Multiple Choice

Hotwire.com,an online travel company specializing in cheap and discounted hotel rates and airfares,often asks customers if their travel dates are flexible when pricing potential bookings.This practice helps Hotwire.com practice price discrimination by allowing it to

• A) easily distinguish between different groups of buyers.
• B) book reservations for customers who are most likely to travel before those who are less likely to travel.
• C) post higher prices initially and then lower the price based on room availability.
• D) determine which customers are simply comparison shopping and which ones are ready to make a purchase.
• E) offer high prices to customers with flexible travel dates and low prices to those who are on a fixed income.

Examine the influence of regulatory policies on business operations and product introductions.

Use consumer price index (CPI) data to compare costs and purchasing power across different times and locations.

Understand and apply economic analysis to environmental policy decision-making.

Differentiate between positive and normative economic analysis.

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Definitions:

Opinion Polls

Surveys conducted to gather the public's views or preferences regarding various topics, including politics, culture, and consumer products, used to infer the opinion of a larger population.

Lynch Mobs

Groups of people who take the law into their own hands to punish an individual, often without a fair trial, historically associated with racial violence in the United States.

Loose Cigarettes

Single cigarettes sold individually, often illegally, as they bypass taxation and standard packaging regulations.

Eric Garner

An African American man whose death during an arrest in New York City sparked nationwide protests and debates over police use of force and racial discrimination.