What is occurring when producers charge different customers different prices for the same good or service?
A) price discrimination
B) price management
C) price regulation
D) price maximization

Question

Quizplus · Accepted Answer

Charging different customers different prices for the same good or service is known as price discrimination. This is often done to extract as much revenue as possible from different market segments, who may have varying levels of willingness to pay. By charging higher prices to those who are willing to pay more, and lower prices to those who are less willing to pay, producers can increase their overall profits.

What Is Occurring When Producers Charge Different Customers Different Prices