Bubba's Hula Shack Bar and Bistro has begun giving customers who can show proof that they arrived at the establishment by public transportation a 10 percent discount on their total bill.This is an example of
A)arbitrage.
B)two-part tariff pricing.
C)price discrimination.
D)odd pricing.

Question

Quizplus · Accepted Answer

This is an example of price discrimination, specifically third-degree price discrimination, as the establishment is offering different prices to different groups of customers based on their method of arrival. Customers who arrived by public transportation are offered a discounted price compared to those who arrived via other methods.

Bubba's Hula Shack Bar and Bistro Has Begun Giving Customers