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An Article on How Hotel Prices Rose During the Solar

Question 61

Multiple Choice
An article on how hotel prices rose during the solar eclipse on August 21, 2017 noted that in Hopkinsville, Kentucky: "At the local La Quinta Inn & Suites, prices are $425 a night, up from a $93 average on Google for the weekend before."
Source: David Gernon, "Once-in-a-lifetime solar eclipse is a bonanza for hotels, airlines," cnbc.com, July 27, 2017.
Which of the following statements is true?
A)The La Quinta Inn & Suites is practicing first-degree price discrimination by charging what the market will bear.
B)This is evidence of third-degree price discrimination because hotel accommodation on a particular day is not a product that can be resold later.
C)There is no evidence of price discrimination; the La Quinta Inn & Suites is responding to increased demand for hotel rooms in the face of constant supply.
D)The La Quinta Inn & Suites has adopted this pricing strategy to capitalize on arbitrage profits.

An article on how hotel prices rose during the solar eclipse on August 21, 2017 noted that in Hopkinsville, Kentucky: "At the local La Quinta Inn & Suites, prices are $425 a night, up from a $93 average on Google for the weekend before."
Source: David Gernon, "Once-in-a-lifetime solar eclipse is a bonanza for hotels, airlines," cnbc.com, July 27, 2017.
Which of the following statements is true?


A) The La Quinta Inn & Suites is practicing first-degree price discrimination by charging what the market will bear.
B) This is evidence of third-degree price discrimination because hotel accommodation on a particular day is not a product that can be resold later.
C) There is no evidence of price discrimination; the La Quinta Inn & Suites is responding to increased demand for hotel rooms in the face of constant supply.
D) The La Quinta Inn & Suites has adopted this pricing strategy to capitalize on arbitrage profits.

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