Fast Stop, a gasoline and grocery quick mart, charges $1.50 for a small bag of pretzels and $2 for two small bags of pretzels. This is an example of______ .
A)second- degree price discrimination
B)two- part pricing
C)third- degree price discrimination
D)an all- or- nothing offer

Question

Quizplus · Accepted Answer

This is an example of second-degree price discrimination, where the price varies according to the quantity consumed or bought, rather than the type of consumer. Fast Stop charges a different price per unit (the bag of pretzels) based on the quantity purchased, which is a common practice in second-degree price discrimination.

Fast Stop, a Gasoline and Grocery Quick Mart, Charges $1