When a supermarket charges more per ounce for a small bottle of ketchup than a larger one,it is engaging in
A) Price discrimination based on observable customer characteristics
B) Perfect price discrimination
C) Quantity-dependent pricing
D) Quality-dependent pricing

Question

Quizplus · Accepted Answer

This is an example of quantity-dependent pricing, where the per-unit price of a product decreases as the quantity purchased increases. In this case, the larger bottle of ketchup has a lower per-ounce price than the smaller bottle. It is not price discrimination based on observable customer characteristics or perfect price discrimination, nor is it quality-dependent pricing as the quality of the ketchup is assumed to be the same in both bottles.

When a Supermarket Charges More Per Ounce for a Small