When a nightclub advertises “ladies night” and allows women to enter the club wi

Question

When a nightclub advertises “ladies night” and allows women to enter the club without a cover charge (whereas men are still required to pay an entrance fee), the club is charging different prices in an attempt to

A. offset the surplus of single men who tend to discriminate between nightclubs based on price

.B. price discriminate, which maximizes the amount of money the club can receive from its customers.

C. discriminate between those who are willing to pay for entry and those who have an inelastic demand for an active nightlife.

D. appeal to different segments of its customer base by allowing certain groups to sometimes gain free entry.

E. attract the best clientele and build a reputation as an exclusive club.

Explanation / Answer

The correct answer is D. The idea is to appeal to particular parts of the client base. The correct answer is thus D.

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