Why might a producer practice price discrimination?
A) to make its products more affordable to those with low incomes
B) to maximise economic efficiency
C) to maximise profits
D) to maximise quantity demanded

Question

Quizplus · Accepted Answer

Price discrimination allows producers to charge different prices to different groups of consumers based on their willingness to pay. By doing so, the producer can increase their profits by capturing more surplus from consumers who are willing to pay a higher price. This can lead to higher profits than charging a single price for all consumers, and is a common practice in many industries.

Why Might a Producer Practice Price Discrimination