Asked by Stephan Polit on May 14, 2024
Verified
The price of on-campus parking from 8:00 AM to 5:00 PM, Monday through Friday, is $3.00. From 5:00 PM to 10:00 PM, Monday through Friday, the price is $1.00. At all other times parking is free. This is an example of:
A) bundling.
B) second-degree price discrimination.
C) a two-part tariff.
D) tying.
E) none of the above
Peak-Load Pricing
A pricing strategy used to manage demand by varying prices at different times or days, especially during high-demand periods.
Two-Part Tariff
A pricing strategy that includes a fixed fee plus a variable charge for each unit of the product or service consumed.
Bundling
A marketing strategy that involves offering several products or services together as a combined package typically at a lower price than they would cost individually.
- Familiarize yourself with the elements affecting profitability and the guidelines for the application of peak-load pricing.
Verified Answer
RH
Rebecca HiltonMay 18, 2024
Final Answer :
E
Explanation :
This pricing strategy does not fit the definitions of bundling, second-degree price discrimination, a two-part tariff, or tying. Instead, it's a form of time-based pricing, where the cost varies depending on the time of day or week, which is not listed among the provided options.
Learning Objectives
- Familiarize yourself with the elements affecting profitability and the guidelines for the application of peak-load pricing.