Price discrimination occurs when
A) Minorities pay a higher price for a product than everyone else.
B) Sellers charge a higher price than is reasonable.
C) Sellers charge two separate prices for the same product to two different groups.
D) Sellers charge one price to all consumers but not wholesalers.

Question

Quizplus · Accepted Answer

Price discrimination refers to charging different prices for the same product to different groups of people. This can be based on a variety of factors such as income, age, location or buying habits. The aim is to maximize profits by capturing as much consumer surplus as possible. It is not necessarily discriminatory or unethical, as long as it is not based on protected characteristics like race, gender, or religion.

Price Discrimination Occurs When