In one of its least favorite actions, Amazon.com was caught fiddling with its prices. Avid DVD buyers, buying in quantity for resale, found that the online retailer was offering different customers different prices for the same DVD, and complained vociferously. Company officials admitted that the company was trying to see how much it could charge for an item before buyers balked. Amazon was caught attempting
A)horizontal price-fixing.
B)price discrimination.
C)resale price maintenance.
D)predatory pricing.
E)bait and switch pricing.

Question

Quizplus · Accepted Answer

Amazon.com was offering different customers different prices for the same DVD, which is an example of price discrimination. They were testing how much they could charge before buyers would refuse to purchase the item at that price.

In One of Its Least Favorite Actions, Amazon