If Mario's Pizza offers consumers who purchase one medium sized pizza a second pizza at half price, this is an example of______ .
A)third- degree price discrimination
B)second- degree price discrimination
C)zero- degree price discrimination
D)first- degree price discrimination

Question

Quizplus · Accepted Answer

This is an example of second-degree price discrimination where the seller offers consumers a discount on the second pizza purchased. It is not first-degree price discrimination because the seller is not charging each customer a different price based on their willingness to pay. It is not third-degree price discrimination because there is no differentiation of prices based on consumer characteristics (such as age, income or location). It is not zero-degree price discrimination because there are still different prices being offered for different pizzas.

If Mario's Pizza Offers Consumers Who Purchase One Medium Sized