The fact that senior citizens are charged a lower price at movie theaters than are younger adults is an example of ____ pricing.
A) price-lining
B) promotional
C) professional
D) differential
E) psychological

Question

Quizplus · Accepted Answer

Differential pricing is the practice of charging different prices for the same product or service, based on a variety of factors such as buyer characteristics, time of purchase, or quantity purchased. In this case, the senior citizen price is lower than the price charged to younger adults, reflecting a discount based on the age of the buyer.

The Fact That Senior Citizens Are Charged a Lower Price