To Encourage an Even Flow of Customers,a Restaurant Varies the Price

question 26

Essay

To encourage an even flow of customers,a restaurant varies the price of an item throughout the day.From 6:00 P.M.to 8:00 P.M.customers pay full price.At lunch from 10:30 A.M.until 2:30 P.M.customers pay half price.From 2:30 until 4:30 customers get a dollar off the lunch price.From 4:30 P.M.until 6:00 P.M.customers get $5.00 off the dinner price.From 8:00 until closing time at 10:00 customers get $5.00 off the dinner price.Write a compound function to represent the cost of an item throughout the day for a dinner price of d.

---

Definitions:

Upstream Price Discrimination

A pricing strategy where producers change prices at different stages of production or distribution, affecting the prices paid by retailers or further downstream sellers.

Arbitrage

The process of buying and selling assets or securities across different markets or forums to profit from price differences.

Vertical Contracts

Agreements between firms at different levels of the supply chain, such as between a manufacturer and a retailer, aimed at controlling or coordinating activities.

Costly Activities

tasks or operations that require a high expenditure of resources, such as time, money, or labor.