If Happy Babies sells its baby formula in the United States for $10 box and for $12 (dollar equivalent)a box Canada, this is an example of______ .
A)third- degree price discrimination
B)second- degree price discrimination
C)two- part pricing
D)peak- load pricing

Question

Quizplus · Accepted Answer

This is an example of third-degree price discrimination, where the company charges different prices in different markets based on their willingness and ability to pay. The higher price in Canada suggests that the company has identified a segment of Canadian consumers who are willing to pay more for the product.

If Happy Babies Sells Its Baby Formula in the United