Great Nuggets finds that there is a clear gender difference in the demand for their chocolates. Men have very little price sensitivity and tend to buy whatever the sales clerk recommends. Women, on the other hand, tend to ask many questions about product quality and attempt to maximize the quantity available for the price. Great Nuggets would like to implement a two-tier pricing system based on gender. What (nonlegal) problems would it encounter?

What will be an ideal response?

The problem this firm would face is the resale of their candies-that is, women buying candy for men in exchange for a cash transfer. The ability to price discriminate with higher prices for more inelastic demanders is limited by the ability of consumers to engage in resale.