(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, as they are usually offered to all buyers regardless of their elasticities of demand. The other options offer discounts to specific groups that are believed to have more or less elastic demand based on their consumer behavior and demographic characteristics.

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