Thursday 18 September 2008

Why are prices in a hotel mini-bar so expensive?

There is a reason why the prices in a hotel mini-bar is so expensive. Because normally in a hotel there is only one bar or at most two bars, so if you stay in a hotel and at night you feel like to drink or have a chat with your buddy, you would prefer to go to the mini-bar which is placed really close to where you live. So the owner of the mini-bar who knows how business goes around, make the price of everything in the mini-bar really high. Because he know that there are not many of options for people who does not have time or who is rich. That is why the price of mini-bar is really expensive. This is called smart business. lol

PS. CHRIS I AM NOT COPYING AND PASTING! THIS IS FROM MY BRAIN!

1 comment:

chris sivewright said...

OK...the analysis should include a discussion and application of elasticity. Now you have moved on a bit with your knowledge you should be able to apply elasticity to the question.