Which of the following is an example of price discrimination?
A) Larry's offers a 30% discount to buyers making repeat purchases within 30 days.
B) Enrique Corp sells different kind of goods at different prices.
C) Chang sells his wares at different prices based on the market conditions.
D) Nathan sells his ice-creams for a discount during winter season.

Question

Quizplus · Accepted Answer

Price discrimination involves charging different prices to different consumers for the same product or service, based on factors other than costs. Larry's offering a 30% discount to buyers making repeat purchases within 30 days is an example of price discrimination, as it differentiates pricing based on customer behavior (repeat purchasing) rather than the cost of goods sold.

Which of the Following Is an Example of Price Discrimination