In Order for a Hotel to Successfully Price Discriminate So

question 67

Multiple Choice

In order for a hotel to successfully price discriminate so that senior citizens are given a discount,the hotel must be able to

• A) offset the economic loss from charging senior citizens a lower price by lowering the marginal cost of renting rooms to senior citizens.
• B) lower its prices to younger customers too.
• C) prevent senior citizens from reselling their rooms to younger customers.
• D) shift its demand curve rightward.
• E) determine if a senior citizen can pay a higher price.

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Definitions:

Diverts Attention

The act of causing one's focus to shift away from a primary task or subject towards something else.

Common Ground

A shared understanding or set of beliefs between individuals or groups.

Direct Approach

A communication method that involves stating the main point or objective at the beginning of the message.

Action Step

A specific, actionable measure identified to achieve a goal or implement a strategy.