A major fruit juice manufacturer failed in its attempt to engage in price discrimination between students and all other consumers.What is a possible explanation for this failure?
A)There was nothing to prevent the students from reselling the fruit juice to other consumers.
B)The fruit juice manufacturer produced in a perfectly competitive market.
C)The two groups of consumers probably have the same demand elasticity for fruit juice.
D)The cost of producing the product is relatively high.
E)Demand for fruit juice is probably inelastic.

Question

Quizplus · Accepted Answer

Price discrimination failed because students could resell the juice to other consumers, undermining the manufacturer's ability to maintain different prices for different groups.

A Major Fruit Juice Manufacturer Failed in Its Attempt to Engage