Price discrimination occurs when:
A) for the same product, a seller charges different customers different prices justified by cost differences.
B) for a different product, a seller charges different customers different prices not justified by cost differences.
C) for a different product, a seller charges the same customers different prices not justified by cost differences.
D) for the same product, a seller charges different customers different prices not justified by cost differences.

Question

Quizplus · Accepted Answer

Price discrimination occurs when a seller charges different customers different prices for the same product not justified by cost differences. The seller is essentially able to charge a higher price to customers who are willing to pay more, while offering a lower price to customers who are willing to pay less. This can be a successful pricing strategy for businesses looking to maximize profit, but can also be a source of frustration for customers who feel unfairly charged.

Price Discrimination Occurs When