narks

Tools

Window

Help

Content $/$ MICROECONOMIC PR $$

Ch$.16$ Homework: Price Discrim $$

:$/$achieve$.$macmillanlearning.com$/$courses$/9900$da$15-69$ff$-4$e$46-$a$4$ec$-$e$7359$eecac$67/4/$fyd$7$cf$/$tools$/$assessi

$+691$ pts

$.1600$

Resources

Al Tutor

Submit Answer

Question $7$ of $16$

Some vending machines on college campuses sell identical items, such as the same bags of potato chips, for two different prices. The low$-$priced chips generally sell out by the end of the day, leaving the more expensive chips for late$-$night visitors to the vending machines.

What must the vending machine operators think about the demand of people who visit the machine at night relative to those who visit the machine during the day? Why might they think this?

People who buy snacks at night value them more than people who buy snacks during the day. People buying snacks at night have fewer substitutes to choose from since a lot of restaurants and other stores are likely to be closed.

People who buy snacks at night are especially more price sensitive than people who buy snacks during the day. People who are in the building late at night are likely to have an office in which they can store food.

People who buy snacks at night are especially more price sensitive than people who buy snacks during the day. People buying snacks at night have probably already eaten three full meals.

People who buy snacks at night value them more than people who buy snacks during the day. People who buy from the vending machines at night are more likely to bring food from home and thus not need food from a vending machine.