When a retailer engages in price discrimination through group pricing, the variation in price is described as some consumers paying _____ rather than some consumers paying _____.
A)a premium added to price; a discounted price
B)a discounted price; a premium added to the price
C)a cost-based price; a demand-based price
D)a demand-based price; a cost-based price

Question

Quizplus · Accepted Answer

Group pricing allows for different prices to be charged to different groups of consumers based on varying factors such as demographics or buying patterns. In this scenario, some consumers will be charged a discounted price while others will pay a premium on the regular price. Therefore, the correct answer is B which states that some consumers are paying a discounted price while others pay a premium added to the price.

When a Retailer Engages in Price Discrimination Through Group Pricing