An Article on How Prices in South Bend, Indiana Rise

Multiple Choice

An article on how prices in South Bend, Indiana rise during Notre Dame home football games noted: "For the Sept.16 game against the University of Michigan, the South Bend Marriott is charging $649 a night for a double room....The Marriott's regular weekend price is $149 a night."
Source: Ilan Brat, "Notre Dame Football Introduces Its Fans To Inflationary Spiral," Wall Street Journal, September 7, 2006, p.A1.
Which of the following statements is true?

A) The Marriott is practicing first-degree price discrimination by charging what the market will bear.
B) This is evidence of third-degree price discrimination because hotel accommodation on a particular day is not a product that can be resold later.
C) There is no evidence of price discrimination; the Marriott is responding to increased demand for hotel rooms in the face of constant supply.
D) The Marriott has adopted this pricing strategy to capitalize on arbitrage profits.