Question

Club Med, which operates a number of vacation resorts, offers vacation packages at a lower price in the winter (i.e., the "off season") than in the summer. This practice is an example of:A)bundling.B)peak-load pricing.C)two-part tariff.D)intertemporal price discrimination.E)Both A and B are correct.

Answer 1

Correct option is B peak-load pricing

Step-by-step explanation:

This is an example of peak load pricing, as the people who buy the resort service at the time of the peak are not able to get the low prices but in the off season the same goods are available at a lower price.