Which of these is NOT an example of price discrimination?
A) soup companies sending coupons to select buyers
B) retirees getting a discount at a local movie theater
C) drug companies charging people living in wealthier countries higher prices for a drug than they charge people living in poorer countries for the same drug
D) a novel printed in paperback that sells for more than the same book in an electronic format

Question

Quizplus · Accepted Answer

Price discrimination involves charging different prices to different groups of consumers for the same product or service, based on their willingness to pay, not on the cost of production or format differences. Choices A, B, and C are examples of price discrimination because they involve varying prices based on consumer segments (coupon users, retirees, and people from different countries). Choice D describes a difference in pricing based on the product format (paperback vs. electronic), which is related to cost and product differentiation, not consumer-based price discrimination.

Which of These Is NOT an Example of Price Discrimination