Which of the following is not an example of price discrimination? a. rental car companies charging lower prices to local residents than to out-of-state residents b. mattress sales on Memorial Day c. student discounts at museums d. children's discounts at amusement parks

Which of the following is not an example of price discrimination? a. rental car companies charging lower prices to local residents than to out-of-state residents b. mattress sales on Memorial Day c. student discounts at museums d. children's discounts at amusement parks

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter8: Monopoly

Section: Chapter Questions

Problem 3SQP

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Price Discrimination

Price discrimination or differential pricing is based on the principle that the seller will charge the buyer a price based on the buyer’s ability and willingness to pay for the product rather than applying uniform pricing for all.

Question

Definition Definition Pricing strategy based on the principle that the seller will charge the buyer a price based on the buyer’s ability and willingness to pay for the product rather than applying uniform pricing for all.

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