Fast Stop, a gasoline and grocery quick mart, charges $2 for a 20 ounce fountain drink and $3 for a 40 ounce fountain drink. This is an example of ______.
A)second- degree price discrimination
B)an all- or- nothing offer
C)two- part pricing
D)third- degree price discrimination

Question

Quizplus · Accepted Answer

This is an example of second-degree price discrimination because the store is charging different prices based on the quantity of the drink purchased. Customers who want more will end up paying more per ounce, while those who only want a small drink will pay less per ounce.

Fast Stop, a Gasoline and Grocery Quick Mart, Charges $2