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(46) CV5 stores offer money of coupons to individuals who make purchases in their stores. On occasion, these coupons grant as much as 20%

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(46) CV5 stores offer \"money of \" coupons to individuals who make purchases in their stores. On occasion, these coupons grant as much as 20% on every item purchased in a subsequent shopping visit to CVS. This causes some people \"to save up\" their purchases at CVS in order to maximize their price savings. (a) What does this pricing structure tell us about the level of ordinary, everyday prices at CVS? (b) Economists frequently talk about price elasticity of demand [how sensitive consumers are to price changes). How does the CV5 pricing system separate customers on the basis of their price sensitivities? (c) W'hich class of customer does the CVS pricing system encourage to patronize CV5 rather than a competitor such as Walgreen's? (d) Might the pricing system discourage other customers from buying at CV5? Explain the reasoning behind your answers

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