What is one way some customers initialize first-degree price discrimination?
A) Walking out
B) Haggling
C) Shoplifting
D) Bargain basement shopping only
E) Threatening to shop elsewhere

Question

Quizplus · Accepted Answer

Haggling is a common way for customers to initiate first-degree price discrimination. By negotiating the price with the seller, customers are able to tailor the price to their specific willingness to pay, and possibly receive a lower price than other buyers who are not willing or able to haggle. This allows sellers to charge different prices to different customers based on their individual valuation of the product, maximizing profits.

What Is One Way Some Customers Initialize First-Degree Price Discrimination