A local restaurant offers "early bird" price discounts for dinners ordered from 4:30 to 6:30 PM. This is an example of:
A)tying.
B)perfect price discrimination.
C)ordinary price discrimination.
D)a two- part tariff.

Question

Quizplus · Accepted Answer

This is an example of ordinary price discrimination as the restaurant is offering different prices based on the time of day, without necessarily knowing the individual customers' willingness to pay. Tying involves forcing customers to buy one product in order to purchase another, perfect price discrimination involves charging each customer their maximum willingness to pay, and a two-part tariff involves charging a fixed fee plus a per-unit fee.

A Local Restaurant Offers "Early Bird" Price Discounts for Dinners