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Question
Dine-in restaurants typically have their lowest business volume on Monday and Tuesday nights. Besides appealing to consumers on a budget, how might a restaurant benefit from charging discounted prices on these nights?
a. Demand on these nights will increase to the point where the restaurant can remove the price discounts.
b. Profits on these nights will surge, allowing the restaurant to close during other nights of the week.
c. By creating an incentive for consumers, a restaurant is able to capture revenue that it wouldnt otherwise.
d. Price discrimination is always successful, so a restaurant can turn an unprofitable situation into a profitable one.
e. Customers on a budget tend to tip their servers better, increasing the supply of staff willing to work on these nights.
Answer
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