The following table shows the utility (measured in dollars)which Lisa derives from water (in 50 litre drums)and diamonds (uncut 1 carat stones).

-What is the term for the selling of an identical product at a different price to different customers for reasons other than cost?
A)Price discrimination.
B)Product substitution.
C)Marginal utility.
D)Consumer surplus.

Question

The following table shows the utility (measured in dollars)which Lisa derives from water (in 50 litre drums)and diamonds (uncut 1 carat stones).
 
-What is the term for the selling of an identical product at a different price to different customers for reasons other than cost?
A)Price discrimination. 
B)Product substitution. 
C)Marginal utility. 
D)Consumer surplus.

Quizplus · Accepted Answer

The term for the selling of an identical product at a different price to different customers for reasons other than cost is price discrimination. This is when a company charges different prices to different customers based on factors such as their willingness to pay or their location.

The Following Table Shows the Utility (Measured in Dollars)which Lisa