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At many amusement parks, customers who enter the park after 4 p

Economics

At many amusement parks, customers who enter the park after 4 p.m. receive a steep discount on the price they pay. This is a type of price discrimination because the amusement park charges a higher price to

a) families with young children that are not in school.

b) people who have a more inelastic demand for amusement parks.

c) people who have a more elastic demand for amusement parks.

d) people who are rich enough to visit the amusement park for an entire day.

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The answer is b). In this case, people with less inelastic demand (for example, tourists with kids who are on vocation) is more willing to pay for a higher price due to time constraint, and firms can also profit from the price discrimination.