Charging a Higher Price for a Motel Room to Customers

question 56

Multiple Choice

Charging a higher price for a motel room to customers with dogs or cats than to customers with no pets is most likely an example of

• A) first-degree price discrimination.
• B) second-degree price discrimination.
• C) third-degree price discrimination.
• D) actual cost differences.

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Definitions:

Incorrect Pricing

A situation where securities are valued incorrectly by the market, potentially offering opportunities for profit.

Representativeness Bias

The tendency to believe that a small sample is reliably representative of a broad population and therefore to infer patterns too quickly.

Over Reliance

The excessive dependence on a particular element, such as a specific resource, technology, or entity, which can lead to vulnerabilities.

Trading Costs

Expenses associated with the buying and selling of assets in financial markets, including commissions, spreads, and slippage.