1 suppose that identically equipped subaru outback suvs all...

1. Suppose that identically equipped Subaru Outback SUVs, all of which are imported from Japan, sell for an average price of $26,000 in Seattle, Washington but sell for $28,000 in Boston, Massachusetts. Briefly explain whether this is an example of price discrimination.

a.) A recent study by economists Steven Puller and Lisa Taylor found that airline tickets purchased over the weekend were priced 5% lower on average. Why would airlines charge lower prices to customers making bookings on the weekend? b.) What is the difference between direct and indirect price discrimination? Provide examples of each. Cooking Wok Value to home users Value to professional Chefs No-name brand $50 $60 High-end professional series $70 $100 c.) How much more do the Chefs value the high-end woks compared to the low-end woks? Use the chart above. d.) Given that the firm offers both products, would the chefs ever pay the full $100 for the high-end wok? Use the chart above. e.) Given that the firm decides to only offer the high-end wok, what is the highest price it can charge the chefs? Use the chart above.

Crystal W.