Economists do not think price discrimination is unfair because
A) people with higher incomes should pay higher prices than those with lower incomes.
B) if the prices charged to some buyers get too high, those who are able to buy at lower prices will just resell their purchases to the people facing the high prices.
C) economists are concerned with efficiency rather than fairness.
D) more buyers are able to purchase the good with price discrimination, some buyers pay a lower price than if there were a single price, and sellers earn higher profit than if there were a single price.

Question

Quizplus · Accepted Answer

Economists do not think price discrimination is unfair because it leads to greater efficiency by allowing more buyers to purchase the good, some buyers are able to pay a lower price, and sellers earn higher profits than if there were a single price. While some may argue that price discrimination is unfair because it can result in higher prices for some buyers, economists prioritize efficiency over fairness. Additionally, the threat of resale helps to prevent excessively high prices for some buyers.

Economists Do Not Think Price Discrimination Is Unfair Because