At a fast food restaurant,a large drink is twice as big as a small drink,but the restaurant charges 79¢ for the small drink and only 99¢ for the large drink.This situation is probably not a case of price discrimination because

Question

Quizplus · Accepted Answer

Price discrimination involves charging different prices to different groups of customers based on their willingness to pay. Here, the restaurant is charging a lower price for a larger drink, which goes against the idea of charging more to customers who are willing to pay more. Therefore, it is unlikely to be price discrimination. Option C is the best choice because the cost of serving a large drink is unlikely to be twice the cost of serving a small drink, which is why the restaurant can afford to charge a lower price for a larger drink.

At a Fast Food Restaurant,a Large Drink Is Twice as Big