There are only a few restaurants near a tourist attraction. These restaurants would mail discount coupons to local residents nearby and they find that this could help them earning more profits. Explain the economic principle behind this.

There are only a few restaurants near a tourist attraction. These restaurants would mail discount coupons to local residents nearby and they find that this could help them earning more profits. Explain the economic principle behind this.

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter3: Your Role As A Consumer

Section: Chapter Questions

Problem 2AA

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Question

There are only a few restaurants near a tourist attraction. These restaurants would mail
discount coupons to local residents nearby and they find that this could help them earning
more profits. Explain the economic principle behind this.

Expert Solution

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Discount coupons helps to increase revenue of the businesses.

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