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:

Inventory

The total amount of goods and materials held by a company that are ready for sale or in the process of being produced.

Perpetual Inventory System

The inventory system in which each purchase and sale of merchandise is recorded in an inventory account.

Control Over Inventory

The process of managing and regulating the supply, storage, and accessibility of inventory to ensure sufficient quantities without excessive surplus.

Periodic Inventory System

The inventory system in which the inventory records do not show the amount available for sale or sold during the period.