Question: Helen runs an Indian takeaway and dine-in restaurant in Toowong. In the evenings, the restaurant …

01 May Question: Helen runs an Indian takeaway and dine-in restaurant in Toowong. In the evenings, the restaurant …

Posted at 05:18h in 2Past Paper by Exams

Helen runs an Indian takeaway and dine-in restaurant in Toowong. In the evenings, the restaurant is quiet from 5pm – 7pm and very busy after 7pm. When the restaurant is busy Helen must hire additional kitchenhands, waiters and bar staff. To encourage customers to eat earlier when her costs are lower, she introduces ‘early bird student specials’ between 5pm-7pm and keeps the busier times at the higher price. Which of the following statements are true: Helen is third degree price discriminating. Helen is peak load pricing. If the discount is offered to all customers between 5pm and 7pm, Helen is not price discriminating Charging less between 5pm and 7pm makes no economic sense. Helen should not be offering the discount to students.

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