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As Manager of the Only Video Rental Store in Town

Question 143

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As manager of the only video rental store in town, you have noticed that on Thursday through Sunday the demand for movie rentals is much less elastic than it is on Monday through Wednesday. If you are currently charging $3 for a two-night rental, give an example of a pricing policy that might increase your revenues compared to a single-pricing strategy.

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Weekend movie rental prices co...

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