Which of the following is not an example of price discrimination?
A)A restaurant sets a fixed cover charge in addition to menu charges.
B)A phone company charges different rates to residential and business users.
C)An electric company charges different rates to senior citizens and younger adults.
D)An airline sets different fares for adults and children.

Question

Quizplus · Accepted Answer

Price discrimination involves charging different prices to different groups of consumers for the same product or service, based on their willingness to pay. A fixed cover charge by a restaurant is a uniform pricing strategy, not varying by customer characteristics, hence not an example of price discrimination.

Which of the Following Is Not an Example of Price