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

Question

Quizplus · Accepted Answer

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.

The Price of On-Campus Parking from 8:00 AM to 5:00