Final answer:
Rocco's discount for students with school IDs is an example of a promotional discount strategy, aimed at increasing sales and customer loyalty. The Pete's Pizza scenario demonstrates the concept of price elasticity, where demand decreases significantly with a price increase. The Coolshirts example is related to the principle of supply and demand at a micro level.
Step-by-step explanation:
The scenario at Rocco's, where a slice of pizza and a soft drink normally cost $4.99 but is offered for $3.99 with a school ID, exemplifies a promotional discount strategy. This is a common business practice designed to encourage more students to purchase from the pizza shop by offering a price break as an incentive. This type of pricing strategy can increase customer loyalty among the student population and potentially boost overall sales.
In the context of price elasticity, the additional example of Pete's Pizza needing to raise the price by $2.00 due to the minimum wage increase illustrates the concept well. If consumers choose to go elsewhere for cheaper food options like tacos at Jose's Fiesta rather than pay the increased pizza price, it indicates that the demand for Pete's Pizza is price elastic—meaning that a price change leads to a significant change in quantity demanded.
The example of Coolshirts selling 10 t-shirts at $9 each helps to underscore basic principles of supply and demand at the microeconomic level and can be related to the earlier examples by highlighting how price impacts sales volume.