Which of these is an example of third-degree price discrimination?
A) charging airline business passengers and leisure travelers different prices
B) charging block rates on utilities
C) charging different prices to consumers at a flea market
D) charging different prices at a used car dealership

Question

Quizplus · Accepted Answer

Third-degree price discrimination involves charging different prices to different groups of consumers for the same product, based on their willingness to pay. Airlines charging business passengers and leisure travelers different prices is an example of this, as these groups have different demand elasticities and willingness to pay.

Which of These Is an Example of Third-Degree Price Discrimination