Jordan's food truck sells tacos and burritos. Her most popular items are chicken tacos and beef tacos. Bean burritos are the least popular item on her menu, although some buyers like the burrito's large size compared to the tacos. The tacos and the burritos both sell for $4. Jordan offers a special deal of a taco and a bean burrito for $7. How is this a form of price discrimination?
A) Buyers are grouped according to preferences for tacos or burritos. Those who prefer tacos pay a lower price for the taco in the bundle.
B) Buyers are grouped according to preferences for tacos or burritos. Those who prefer burritos pay a lower price for the burrito in the bundle.
C) Buyers who buy the bundle are getting less satisfaction per dollar spent because they are getting a less preferred item instead of two of their more preferred items.
D) Those who prefer tacos and those who prefer burritos are induced to get a unit of their less preferred product because they can buy it at a discounted price of $3 by buying a bundle.
Correct Answer:
Verified
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