A producer might practice price discrimination
A)to make its products more affordable to those with low incomes
B)to maximise economic efficiency
C)to maximise profits
D)to maximise quantity demanded

Question

Quizplus · Accepted Answer

Price discrimination allows a producer to charge different prices to different groups of customers based on their willingness to pay. This can maximize profits by capturing more revenue from customers who are willing to pay a higher price, while still making sales to those who are not willing to pay as much. The other choices may also be factors, but the primary motivation for price discrimination is to increase profits.

A Producer Might Practice Price Discrimination