Second-degree price discrimination generally takes the form of
A) special prices for students and seniors.
B) membership clubs.
C) quantity discounts.
D) "extras" like free delivery and free customer service.

Question

Quizplus · Accepted Answer

Quantity discounts are an example of second-degree price discrimination as sellers are able to charge higher prices for low volume purchases and lower prices for larger or bulk purchases. This strategy allows sellers to capture consumer surplus while incentivizing buyers to purchase more in order to receive a lower overall price. Options A and D are examples of third-degree price discrimination, while option B could fall under both second and third-degree depending on the specifics of the membership program.

Second-Degree Price Discrimination Generally Takes the Form of