KEY CONCEPT CASE STUDY"So just what is it you do all day long? Try to figure out how to raise our pr notices?" asked Sam with a good$-$natured smile. Sam, the F&B director at Resort, was having coffee in one of the property's restaurants with Damar newly appointed Revenue Manager and a colleague that Sam had quickly grown to ke very much."Trust me$,"$ replied Damario. "Guests always know when we raise prices!""Well, that's the problem with you roomies. You just change prices too much," said Sam."What do you mean?" asked Damario."Well, as long as I've been here, whenever the resort gets busy, our room rates go up$.$ And the people managing our room rates think it is O$.$K$.$ to jack up the prices. Can you imagine how my guests would react if I raised our dinner prices whenever my restaurant was full? It wouldn't stay full very long, I can bet you that!" said Sam."It's true that the pricing of rooms and food in most hotels are pretty different," saidDamario"Why do you feel like our room prices have to be managed so much? In my department, my motto for prices is "Set $\text{'}$em and then forget $\text{'}$em$."$At least until the next menu reprint. Ithink changing prices all the time would be too confusing for my customers, and I think it would drive my servers crazy trying to remember exactly what today's prices are if l changed them all the time!"How would you explain to Sam the differences inherent in pricing hard supply con prince bortie cambriancollegeca products, soft constraint products, and those with no supply constraints?Consider your answer to the previous question. Do you think that guests of the Barcena Resort, if they overheard your conversation with Sam, would think your explanation to him reflects a fair and ethical pricing philosophy on the part of the resort?Is it ever fair and ethical for a revenue manager who is responsible for the pricing of hard $($or soft$)$ constraint products to increase prices by $10$ percent in response to increased consumer demand? $50$ percent? $100$ percent or more?