Second degree discrimination,represented by the $5 foot-long sandwich available from Subway,occurs when the price per unit
A) is consistent over time.
B) varies from month to month.
C) varies with the quantity sold.
D) varies from producer to producer.
E) is determined by the consumer's willingness to pay.

Question

Quizplus · Accepted Answer

Second degree price discrimination involves charging different prices based on the quantity purchased. In this case, Subway charges $5 for a foot-long sandwich regardless of whether the customer buys one or two. This encourages customers to buy more, resulting in higher revenue for Subway.

Second Degree Discrimination,represented by the $5 Foot-Long Sandwich Available from Subway,occurs