Use the following excerpt from a campus-wide announcement about a concert at the University of West Georgia (UWG)to answer the following questions:
The Band Perry [a Grammy-nominated country music act] will perform live at the University of West Georgia Coliseum on Sunday,April 22,as part of its Purveyors of Performance Tour 2012 ...Prices are $10 in advance or $15 on the day of the show for those with a UWG [Student] ID,and $20 in advance or $25 on the day of the show for the general public.

-Which price discrimination condition was satisfied by requiring students to show an ID card for an initial ticket purchase?
A) The concert promoter was able to encourage the resale of the product or service to another student.
B) The concert promoter was able to distinguish easily among groups of buyers with different price elasticities of demand.
C) The concert promoter was able to prevent the resale of the product or service to another consumer who is willing to pay more.
D) The concert promoter was able to distinguish easily among groups of sellers with different price elasticities of supply.
E) The concert promoter was able to distinguish easily between true fans of the Band Perry and those who just wanted to see a cheap concert.

Question

Use the following excerpt from a campus-wide announcement about a concert at the University of West Georgia (UWG)to answer the following questions:
The Band Perry [a Grammy-nominated country music act] will perform live at the University of West Georgia Coliseum on Sunday,April 22,as part of its Purveyors of Performance Tour 2012 ...Prices are $10 in advance or $15 on the day of the show for those with a UWG [Student] ID,and $20 in advance or $25 on the day of the show for the general public.

-Which price discrimination condition was satisfied by requiring students to show an ID card for an initial ticket purchase?
A) The concert promoter was able to encourage the resale of the product or service to another student.
B) The concert promoter was able to distinguish easily among groups of buyers with different price elasticities of demand.
C) The concert promoter was able to prevent the resale of the product or service to another consumer who is willing to pay more.
D) The concert promoter was able to distinguish easily among groups of sellers with different price elasticities of supply.
E) The concert promoter was able to distinguish easily between true fans of the Band Perry and those who just wanted to see a cheap concert.

Quizplus · Accepted Answer

Requiring students to show an ID card for an initial ticket purchase allows the promoter to easily distinguish between two groups of buyers with different price elasticities of demand (students and the general public). Students are likely to have a more elastic demand for tickets (more responsive to changes in price) than the general public, so offering a lower price to students can help to maximize revenue by capturing more student ticket sales while still charging a higher price to the less price-sensitive general public.

Use the Following Excerpt from a Campus-Wide Announcement About a Concert