When ski butternut reduced the first time skier package from $135 to $75, first time skiers:

a. experienced unitary elasticity for ski lessons.

b. saw a profit maximization scheme based on discounting the first visit and charging a lot more once the skier is hooked.

c. saw a perceived reasonable value for an activity they haven't tried yet.

d. bartered for lower priced rentals?

Question

Emely Ibarra

Business

30 October, 18:20

When ski butternut reduced the first time skier package from $135 to $75, first time skiers:

a. experienced unitary elasticity for ski lessons.

b. saw a profit maximization scheme based on discounting the first visit and charging a lot more once the skier is hooked.

c. saw a perceived reasonable value for an activity they haven't tried yet.

d. bartered for lower priced rentals?

+2

Answers (1)

Know the Answer?

Mila Cowan · Answer 1

When ski butternut reduced the first time skier package from $135 to $75, first time skiers:

a. experienced unitary elasticity for ski lessons.

b. saw a profit maximization scheme based on discounting the first visit and charging a lot more once the skier is hooked.

c. saw a perceived reasonable value for an activity they haven't tried yet.

d. bartered for lower priced rentals?

Explanation:

The correct answer is 'b', The ski butternut used a strategic approach where they are offering a discounted package for first timers to attract them and once the skiers are comfortable and hooked they would again increase their prices and charge the skiers the high price now.