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Hi, thanks in advance! Helen runs a restaurant in South Bank. During the Brisbane River Fire event, Southbank restaurants are in very high demand. To

Hi, thanks in advance!

Helen runs a restaurant in South Bank. During the Brisbane River Fire event, Southbank restaurants are in very high demand. To meet the demand on this night, Helen has to hire additional staff and hire additional tables and chairs. As a result, Helen offers a 'Special River Fire' menu that is more expensive than her usual menu, although contains the same food.

Which of the following statements are true (more than one options are true):

  1. Charging more during River Fire is an example of second degree price discrimination.
  2. Charging more during River Fire is an example of peak load pricing.
  3. When Helen's costs are higher, she should not operate her restaurant.
  4. Helen does not have pricing power in this situation.

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