QUESTION 14 Many college football teams require a donation i

QUESTION 14 Many college football teams require a \"donation in order to purchase season tickets. This is O price gouging. O a tie-in sale. O two part pricing. O anti-competitive behavior.

Solution

Correct option is two part pricing. Two part pricing involves two separate charges to consume a single good or service. Services with relatively inelastic demand use a two part pricing system which includes basic fee plus additional user fee. Many college football teams require a \"donation\" in order to purchase season tickets. This is so because an initial payment i.e., donation to the college is frequently necessary to allocate a limited inventory of preferable seats. Fans paying the initial fee are then given the opportunity to purchase tickets.