(a)[4]
What evidence in the article suggests that loyalty cards make markets imperfectly competitive?
(b)[4]
Analyse why a profit maximising retailer may be interested in the relationship between utility, consumers’ loyalty and price elasticity of demand.
(c)[5]
Consider whether the article presents conflicting evidence about the effectiveness of loyalty cards that provide price discounts.
(d)[7]
Discuss how rationality is used in indifference curve theory of consumer behaviour.