iTunes charges British customers 20 percent more than customers in France and Germany. Apple defended the price difference, saying that the "underlying economic model in each country has an impact on how we price our track downloads." An economist would say that Apple is engaged in:

Question

Quizplus · Accepted Answer

Price discrimination occurs when a company charges different prices for the same product in different markets or to different consumers, based on willingness to pay or other factors.

ITunes Charges British Customers 20 Percent More Than Customers in France