Price discrimination is
A)The practice of charging different prices to different individual buyers or customer groups
B)The practice of differentiating the product to make demand less elastic
C)The practice of deciding a single price to be charged to customers
D)Always illegal

Question

​Price discrimination is
A)​The practice of charging different prices to different individual buyers or customer groups
B)The practice of differentiating the product to make demand less elastic
C)The practice of deciding a single price to be charged to customers
D)​Always illegal

Quizplus · Accepted Answer

Price discrimination refers to the practice of charging different prices to different individual buyers or customer groups based on factors such as their willingness to pay, location, age, or other characteristics. It is not always illegal, and can be a strategy used by businesses to increase profits. Option B refers to product differentiation, which is different from price discrimination. Option C is not accurate, as price discrimination involves charging different prices, not a single price. Option D is not true, as price discrimination is not always illegal, although there are certain types of price discrimination that may be deemed illegal under antitrust laws.

​Price Discrimination Is

Price Discrimination Is