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42. A retail store manager knows from his market research that holders of loyalty cards have relatively elastic demand for the items that the store
42. A retail store manager knows from his market research that holders of loyalty cards have relatively elastic demand for the items that the store sells. As a consequence, it is routine for the store to offer lower prices to loyalty-card customers on popular items.
The best description for this pricing strategy is:
a. First-degree price discrimination.
b. Second-degree price discrimination.
c. Third-degree price discrimination.
b. Block pricing.
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