If a grocery store offers a five percent discount to senior citizens, this is an example of and is_______ .

Question

Quizplus · Accepted Answer

This is an example of price discrimination as the store is offering a discount to a specific group of customers (senior citizens). However, it is not necessarily illegal unless it substantially lessens competition or tends to create a monopoly, which is the case with any form of price discrimination. Therefore, the correct answer is D.

If a Grocery Store Offers a Five Percent Discount to Senior