Question

The book mentions several different ways a product can be priced in order to maximize revenue....

The book mentions several different ways a product can be priced in order to maximize revenue. Can you think of a product that you have seen price discrimination? bundling? etc? Discuss.(econ of sports)

Homework Answers

Answer #1

Answer : Yes, I saw the price discrimination and bundling situation both for tomatoes in vegetable market.

The price of 1 kg tomatoes in our local market is $50. But in other markets the price of 1 kg tomatoes is either $40 or $45. So, there occurs a price discrimination situation for tomatoes in the market. At the same time in our local market a bundling situation also occurs for tomatoes. In our local market the tomato sellers gives a bundling offer price to consumers. Sellers gives offer that if you purchase 1 kg tomatoes then it's price is $50; but if you purchase 2 kg tomatoes at a time then you pay only $90. This means if we purchase 2 kg tomatoes without bundling offer then we have to pay $100. But at bundling price we pays only $90 for 2 kg tomatoes. Thus, I experienced about the price discrimination and bundling both situation for tomatoes in vegetable market.

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