Which of the following is an example of price discrimination?
A) Nestlé provides money-off coupons for its products.
B) Virgin trains offers a lower price for weekend travel compared to weekday rates on the same routes.
C) Hotel rates for members of the Automobile Association are lower than for non-members.
D) All of the above are correct.

Question

Quizplus · Accepted Answer

A) Nestlé's money-off coupons are an example of sales promotion, not price discrimination. 
B) Virgin trains offering a lower price for weekend travel compared to weekday rates on the same routes is an example of price discrimination on the basis of time, as the demand for travel is higher during weekdays. 
C) Hotel rates for members of the Automobile Association being lower than for non-members is an example of price discrimination on the basis of membership. 
Therefore, all three options demonstrate different types of price discrimination.

Which of the Following Is an Example of Price Discrimination