Question :
61) Bubba’s Hula Shack bar and bistro has begun giving : 1387943
61) Bubba’s Hula Shack bar and bistro has begun giving customers who can show proof that they arrived at the establishment by public transportation a 10 percent discount on their total bill. This is an example of
A) arbitrage.
B) two-part tariff pricing.
C) price discrimination.
D) odd pricing.
62) Bubba’s Hula Shack bar and bistro has begun giving customers who can show proof that they arrived at the establishment by public transportation a 10 percent discount on their total bill. All else equal, customers who arrive by public transportation to take advantage of Bubba’s Hula Shack discount have a ________ for the services of the establishment than customers who drive to the establishment.
A) higher price elasticity of demand
B) lower price elasticity of demand
C) higher price elasticity of supply
D) lower price elasticity of supply
63) One reason why airlines charge business travelers and leisure travelers different prices is
A) business travelers fly according to schedules that are planned months in advance. Many leisure travelers buy their tickets at the last minute.
B) business travelers usually travel alone. Leisure travelers often fly with friends and family members; therefore, they have a more inelastic demand for airline tickets than business travelers.
C) business travelers fly more often than most leisure travelers. As a result, their employers are able to bargain with airlines for lower fares than leisure travelers pay.
D) business travelers often have inflexible schedules and have to travel on a particular day. The opposite is true for leisure travelers.
64) Perfect price discrimination is also known as
A) monopoly.
B) first-degree price discrimination.
C) third-degree price discrimination.
D) yield management.
65) The prices college students and faculty members pay for Apple computers are lower than the prices Apple charges on its Website and in retail stores. Apple charges lower prices to college students and faculty members because
A) college students and faculty members have a more elastic demand for computers than the general public.
B) Apple can deduct from its federal taxes some of the costs of the computers it sells to college students and faculty members.
C) college students and faculty members have a more inelastic demand for computers than the general public.
D) college students and faculty members typically buy more supplies from Apple (print cartridges, paper, etc.) than the general public.
66) College students and faculty members have a more elastic demand than the general public for Apple’s iMac desktop computers. From this we can conclude that
A) Apple will charge college students and faculty members higher prices than it charges the general public.
B) Apple will charge college students and faculty members lower prices than it charges the general public.
C) the general public will earn arbitrage profits by buying iMac desktop computers from Apple and reselling them to college students and faculty members.
D) Apple will earn economic profits from the computers it sells to the general public but will break even on the computers it sells to college students and faculty members.
67) Many colleges and universities practice yield management to maximize the revenue they receive from tuition and
A) to maximize the amount of aid they receive from the federal government.
B) to maximize the amount of their student loans.
C) to maximize the size of their endowments.
D) to increase the academic quality of the students who enroll in their schools.
68) Many colleges and universities practice yield management. As a result, they offer different financial aid packages to different students. One result of yield management is that colleges often
A) offer a less generous financial aid package to students who apply for an early admission decision.
B) offer a more generous financial aid package to students who apply for an early admission decision.
C) offer a less generous financial aid package to students with relatively high family incomes.
D) offer a less generous financial aid package to students who don’t participate in many extracurricular activities when they are in high school.
69) If a firm knew every consumer’s willingness to pay and could prevent arbitrage, it could charge every consumer a different price. This practice is known as
A) first-degree exploitation, or perfect price discrimination.
B) maximization of producer surplus, or perfect price discrimination.
C) first-degree price discrimination, or perfect price discrimination.
D) first-degree transfer of consumer surplus, or perfect price discrimination.
70) A price-discriminating firm charges the highest price to
A) the group with the largest demand.
B) the group with the most elastic demand.
C) the group with the least elastic demand.
D) the group with demand that is unit-elastic.
