(Last Word) Which of the following is not an example of pricing based on group differences in elasticity of demand?
A) senior-citizen discounts at restaurants and motels
B) cash rebates for purchases of automobiles
C) child discounts for admission to theme parks
D) discounted student prices for visits to museums

Question

Quizplus · Accepted Answer

Cash rebates for purchases of automobiles are not an example of pricing based on group differences in elasticity of demand. Cash rebates are typically used as an incentive to stimulate demand, rather than adjusting the price based on a particular group's sensitivity to price changes. The other options listed (senior-citizen discounts, child discounts, and student prices) involve adjusting prices based on the elasticity of demand for specific groups.

(Last Word) Which of the Following Is Not an Example