When a movie theater charges a lower ticket price for senior citizens and/or students, the movie theater is engaging in:
A)price gouging.
B)third-degree price discrimination.
C)first-degree price discrimination.
D)second-degree price discrimination.

Question

Quizplus · Accepted Answer

This is an example of third-degree price discrimination, where different prices are charged to different groups of people based on their willingness or ability to pay. In this case, the groups are senior citizens and students.

When a Movie Theater Charges a Lower Ticket Price for Senior