Ariel owns an automobile dealership that sells several car models. Ariel negotiates the price with each customer so that they are willing to pay the highest price possible. This results in customers paying different prices for the same model. Ariel is
A)exploiting customers.
B)giving customers a bargain by selling at prices below the demand curve.
C)practicing perfect price discrimination.
D)seeking to sell at market equilibrium.

Question

Quizplus · Accepted Answer

Ariel is practicing perfect price discrimination, which involves charging each customer the highest price they are willing to pay. This results in capturing all the consumer surplus and maximizing profit.

Ariel Owns an Automobile Dealership That Sells Several Car Models