Las Vegas is one of the most popular tourist destinations in the United States. In November 2008, the Rio Hotel and Casino in Las Vegas dropped the price of its breakfast buffet to $5.99 for local residents, while keeping the regular price of $14.99 for nonlocals. When setting the price for a meal, why would it matter to the restaurant if the customer is a local resident?

Based on: Las Vegas Advisor, November, 2008.