Question

The price of on-campus parking from 8:00 AM to 5:00 PM, Monday through Friday, is $3.00. From5:00 PM to 10:00 PM, Monday through Friday, the price is $1.00. At all other times parking is free.This is an example of:

A)a two-part tariff.
B)tying.
C)bundling.
D)second-degree price discrimination.
E)none of the above

Answer 1

E) none of the above

Step-by-step explanation:

It is an example of peak pricing.

Peak pricing is when consumers pay higher during periods of high demand.

It is reasonable to assume that demand for on campus parking would be higher from 8:00 AM to 5:00 PM, than between 5:00 PM to 10:00 PM. This explains why prices are higher between 8 am - 5pm

I hope my answer helps you.