A campus auditorium sells tickets at half price to students during the last 30 minutes before a concert starts.This is an example of:
A) price discrimination.
B) peak-load pricing.
C) price discrimination or peak-load pricing.
D) None of the preceding statements is correct.

Question

Quizplus · Accepted Answer

This is an example of price discrimination because the auditorium is charging different prices to different groups (students vs. non-students) based on their willingness to pay. It can also be considered peak-load pricing because the discount is offered during a specific time period (last 30 minutes before a concert starts) to manage demand.

A Campus Auditorium Sells Tickets at Half Price to Students