It is frequently observed that when a city is located next to a major highway,gas stations located close to the highway charge higher prices than gas stations located farther away.This is an example of:
A)first-degree price discrimination.
B)second-degree price discrimination.
C)third-degree price discrimination.
D)illegal price discrimination.

Question

Quizplus · Accepted Answer

This is an example of third-degree price discrimination where different prices are charged to different groups of customers based on their location. In this case, those who are located near the highway are charged higher prices because of their convenience and ease of access to the gas station.

It Is Frequently Observed That When a City Is Located