BUAD301 Lecture Notes - Lecture 12: Mental Accounting, Anheuser-Busch Brands, Price Discrimination

• School: University of Delaware
• Department: Business Administration
• Course: BUAD301
• Professor: Michal Herzenstein

Document Summary

If demand is elastic and price goes up, a large proportion of customers will purchase: substitutes, companies are not allowed to discriminate based on, race, when companies price their products, sunk costs should be. Ignored: which of the following is not an example of a bundle, bananas and strawberries. In first degree price discrimination the seller is concerned with the __________ of each consumer: willingness to pay, as price gets __________ elasticity gets __________, cheaper; smaller, price wars, should be avoided. 1: what is it called when competitors collude to raise prices, price fixing. In the soda stand example, adding a third stand __________ profitability. If the price of a good increases and there is a small change in demand for that good, it can be said that the demand is. In an example from the slides, two couples were reimbursed for salmon that the airline had lost in transportation.