When a nightclub advertises "ladies night" and allows women to enter the club without a cover charge (whereas men are still required to pay an entrance fee) , the club is charging different prices in an attempt to:
A) attract the best clientele and build a reputation as an exclusive club.
B) discriminate between those who are willing to pay for entry and those who have an inelastic demand for an active nightlife.
C) appeal to different segments of their customer base by allowing certain groups to sometimes gain free entry.
D) offset the surplus of single men who tend to discriminate between nightclubs based on price.
E) Price-discriminate, which maximizes the amount of money the club can receive from its customers.
Correct Answer:
Verified
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