Why is concept of price elasticity of demand important

Assignment Help Managerial Economics

Reference no: EM133270041

Assignment:

Strategic Pricing Examples

a) You attended a Twins' ball game last spring. Getting into a discussion with the person sitting next to you, you discovered that you paid less for your ticket than your ' neighbor paid. This was not surprising, since you had gotten a student discount!

i) What type of strategic pricing is at work here? Explain.

ii) Why is the concept of price elasticity of demand important for this type of pricing practice?

b) You buy a $100 season pass to the Mega Dinosaur Waterfall Putt-Putt (MDWPP) golf course in Myrtle Beach, South Carolina. The pass grants you unlimited and free access to MDWPP for the year.

i) What type of strategic pricing is this? Explain.

ii) How might this pricing allow MDWPP to capture additional consumer surplus as pro?t, as compared to not offering a pass and simply charging a price per visit?

Reference no: EM133270041

Questions Cloud

Introduced to all of holden siblings : Now that you've been introduced to all of Holden's siblings, analyze the role each one seems to play in Holden's life.

Supporting evidence from either tristan harris ted talk : Write one-page infographic that informs the viewer about the central message and supporting evidence from either Tristan Harris's Ted Talk

Identity crises are prevalent throughout the play : Identity crises are prevalent throughout the play. What causes these crises? What seems to be at the heart of identity in the play

Are there legal activities you view as socially undesirable : Are there legal activities that you view as socially undesirable? If so, which ones? Do you think that GDP should include these activities? Why or why not?

Why is concept of price elasticity of demand important : What type of strategic pricing is at work here? Explain. Why is the concept of price elasticity of demand important for this type of pricing practice?

Why is listening a fundamental skill in negotiation : Why is an awareness of different communication (direct and indirect) styles and approaches important for a negotiator?

Discuss the real business cycle model : Consider the Real Business Cycle (RBC) Model studied in Lecture notes 6-7-8. Suppose there is an increase in the importance of leisure.

Importance of circular economy model to middle countries : Discuss the importance of circular economy model to the Middle East countries, please discuss its implications in one of GCC countries.

Differences between formal and non-formal education : What are the differences between formal and non-formal education? Why are health and education so closely linked in the development challenge?

User Account

All Pages