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, as customers who arrive by public transportation receive a discount that is not available to others. By offering a lower price to a specific group of customers, the establishment is engaging in price discrimination.

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