Amtrak Is Considering Two Pricing Strategies for Its Service

question 26

Multiple Choice

Amtrak is considering two pricing strategies for its service. One is to price its train tickets so that it is less expensive to travel on weekends than during the week when there is heavy business travel, which illustrates _____ pricing. The second is to price its train tickets so that the further away the travel date, the greater the discount, which is best described as _____.

• A) demand-based; secondary market pricing
• B) demand-based; differential pricing
• C) demand-based; periodic discounting
• D) cost-plus; secondary markup
• E) cost-plus; periodic discounting

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Definitions:

Degenerative Joint Disease

Another term for osteoarthritis, a type of arthritis that occurs when the protective cartilage on the ends of bones wears down over time.

Osteoarthritis

Arthritis characterized by erosion of articular cartilage, which becomes soft, frayed, and thinned with eburnation of subchondral bone and outgrowths of marginal osteophytes; pain and loss of function result; mainly affects weight-bearing joints and is more common in women, the overweight, and older people.

Depression

A psychological condition marked by a continuous low mood or lack of enthusiasm for activities, leading to considerable disruption in everyday functioning.

Elderly Patients

Individuals, typically aged 65 and over, who may require special medical attention due to the natural aging process and associated health conditions.