Answer Questions based on the following situation:
Black Diamond Tennis & Golf Club offers golf and tennis memberships to the residents of Black Diamond, Ohio, in which there are two types of families: golf-oriented families and tennis-oriented families. There are 100 golf-oriented families and 100 tennis-oriented families in Black Diamond. Forecasted demand prices for golf and tennis memberships by family type are given below. There is no way to identify family types for pricing purposes, and all costs are fixed so that maximizing total revenue is equivalent to maximizing profit.
Demand Prices for Golf and Tennis Memberships
-The conditions are right for bundle pricing to increase profit at Black Diamond Tennis & Golf Club because
A) demand prices for golf are greater than demand prices for tennis.
B) Demand prices differ across family types for tennis and golf memberships.
C) Demand prices are negatively correlated.
D) Demand prices are positively correlated.
E) Both b and c
Correct Answer:
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