If tourists are charged a much higher price than the natives of a country for exactly the same item,what kind of pricing is involved?
A)Monopoly pricing.
B)Price discrimination.
C)Competitive pricing.

Question

Quizplus · Accepted Answer

This is an example of price discrimination where the seller charges different prices to different buyers for the same product or service based on their willingness to pay. In this case, tourists are charged a higher price as it is assumed that they have a higher willingness to pay compared to locals who may be price sensitive.

If Tourists Are Charged a Much Higher Price Than the Natives