Price discrimination explains why high-ranking universities often set rules that determine prices of admission based on the students:
A)final high-school exam results
B)sex
C)age
D)financial resources

Question

Quizplus · Accepted Answer

Price discrimination involves charging different prices to different customers based on their willingness and ability to pay. High-ranking universities may set rules that determine prices of admission based on the financial resources of the students, as they may be able to afford higher tuition fees. This allows the university to capture more revenue from those who are able and willing to pay more, while still filling their enrollment quota. Choices A, B, and C are not relevant to price discrimination in this context.

Price Discrimination Explains Why High-Ranking Universities Often Set Rules That