A restaurant has two menus, one printed in English, and the other printed in the local language.The prices on the English menu are double those on the other menu.The restaurant owners believe that if a customer cannot read the local language, he must be a tourist and will pay more.This is an example of:
A)price fixing.
B)price discrimination.
C)predatory pricing.
D)referral selling.
E)resale price maintenance.

Question

Quizplus · Accepted Answer

The practice of charging different prices for the same product or service is called price discrimination. In this scenario, the restaurant is charging double the price to customers who can only read the English menu, assuming that they are tourists and will be willing to pay more. This is a clear example of price discrimination based on language proficiency.

A Restaurant Has Two Menus, One Printed in English, and the Other