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Consider the Following Statement: "Price Discrimination Is Harmful to Society

Question 126

Multiple Choice

Consider the following statement: "Price discrimination is harmful to society and should not be tolerated under any circumstance." Why is this statement false?


A) Price discrimination always leads to lower prices and higher quantities.
B) Price discrimination can allow for some consumers to be made better off because they are able to buy a product or service that was otherwise unaffordable.
C) Price discrimination leads to higher prices for all consumers and a reduction in consumer surplus.
D) Price discrimination reduces total quantity exchanged and therefore reduces the sum of producer and consumer surplus.
E) Price discrimination violates the Canadian Charter of Rights and Freedoms.

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