Second-degree price discrimination occurs when
A) every consumer pays his or her maximum willingness to pay.
B) consumers are charged one price for the first bundle of purchases and a different price for the next bundle of purchases.
C) different groups of people are charged different prices.
D) a business asks a series of personal questions about what the purchase is going to be used for.

Question

Quizplus · Accepted Answer

Second-degree price discrimination involves charging different prices based on the quantity of goods purchased or the version of the product, rather than on personal characteristics of the buyer. Option B, which describes a scenario where consumers are charged one price for the first bundle of purchases and a different price for subsequent bundles, is an example of this type of pricing strategy.

Second-Degree Price Discrimination Occurs When