Price discrimination is more likely in the case of services than in the case of goods because
A) producers of goods usually do not face downward sloping demand curves.
B) it is easier to distinguish customers with different elasticities of demand with respect to services than with goods.
C) elasticities of demand vary more with services than with goods.
D) it is more difficult to resell services.

Question

Quizplus · Accepted Answer

Price discrimination is more likely in the case of services than in goods primarily because services are harder to resell. This characteristic makes it difficult for consumers to arbitrage between different prices, allowing sellers to charge different prices to different consumers more effectively.

Price Discrimination Is More Likely in the Case of Services