1. Qantas sells tickets through conventional travel agents, online interrnedia ries, its own telephone call centre, and its own website. Typically, an airline's cost per transaction is lowest for bookings through its own website and highest for bookings through conventional travel agents. Qantas's cheapest fare, the Red e-Deal, is only available for online booking. A. How does technology affect an airline's ability to discriminate on price? B. Considering Ctantas's cost of bookings and travelers' elasticity of demand, explain why the airline offers the Red e-Deal only through online booking. C. For ight CtFttl departing Sydney on January 5, 2015 at 5 am for Melbourne, the Red e-Deal fare was A5245. For the next ight, departing at 5:30 am, the Red e-Deal fare was A5155. Explain the difference in pricing. D. Explain why Qantas limits the number of seats sold by the Red e-Deal. 2. Founded by Empress Catherine M [the Great}, the Hermitage in St Petersburg, Russia, is one of the world's great art museums. General admission is free for all students and children, and Russian pensioners. The price is 35D roubles for Russian adults, and 400 roubles {equivalent to $5} for foreign adults. Through its website, d1e Hermitage encourages visitors to buy tickets through the Internet at a price of $1155 and so \"avoid a long line at the ticketing office.\" The Hermitage also offers free admission to all visitors on the rst Thursday of each month. A. Explain how the Hermitage uses direct segment discrimination. Discuss whether Hermitage pricing meets the conditions for such discrimination. B. Explain how the Hermitage uses indirect segment discrimination. Discuss whether Hermitage pricing meets the conditions for such discrimination. C. Comment on the froe admission on the rst Thursday of each month with regard to: {i} maximizing the number of visitors served for a given bu dget; and {ii} cannibalizationl