If Mort's House of Flowers sells one dozen roses to different customers at different prices, economists would consider this an example of
A)price gouging.
B)rational ignorance.
C)arbitrage.
D)price discrimination.

Question

Quizplus · Accepted Answer

Selling one dozen roses to different customers at different prices is an example of price discrimination, which occurs when a seller charges different prices to different customers for the same product or service based on their willingness to pay. In this case, Mort's House of Flowers is likely charging higher prices to customers who value the roses more, and lower prices to customers who are more price-sensitive.

If Mort's House of Flowers Sells One Dozen Roses to Different