1. Question

The price cutting system is one way for manufacturers to be able to attract the attention of customers in shopping. For example, a beverage company X where the available cup sizes are small cups, medium cups, and large cups. With this condition, some consumers will buy drinks with small cup sizes and some will pay more for larger sizes (but at a lower price per unit). The larger sizes are considered to be multiplication of the very small sizes for the same type of product so that the buyer is given a discount on the purchase amount. For example, a milk drink costs Rp. 15.000,- per unit and Rp. 25.000,- for purchases in the amount of 2 units, so buyers get a discount

for the purchase of these 2 units. Give your opinion:

a. What is the background of consumers being encouraged to only buy products with quantity discounts!

b. What actions should producers take so as not to go bankrupt from the applied price system!

2.Question.

There has been a price inequality in the region in Indonesia, namely Papua, where the price of vehicle fuel can reach Rp. 70,000, -/liter, this event illustrates that the role of regulation is still not felt so that welfare guarantees in each area are far from expectations. The role of the government is expected for the community in order to be able to allocate, design, and be able to enforce prices and service standards for minimum operational activities in the area. However, in these 2 years (in the event of covid) there was an increase in the price of goods that are very important for the community for health, namely masks, where the price of masks is Rp. 400,000, - which was originally Rp. 225.000,-/box until the end of January to reach Rp. 500.000,-/box, however people will still buy at that price. Based on the data above, give your analysis regarding:

a. how is the role and action of the Government in order to be able to equalize the price level throughout Indonesia!

b. Will regulation forever have a positive impact on business people, give an example!