Which of the following is an example of price discrimination?
A) UPS charges more if a package is sent from New York to Hawaii and less if it is sent from New York to New Jersey.
B) Frank's Furniture shop charges no delivery fee for furniture delivered within Dutchess County but charges $40 delivery fee outside of the county.
C) Albert pays 25 percent less on prescription drugs because he is a senior citizen.
D) Only answers A and B are correct.
E) Answers A, B, and C are all correct.

Question

Quizplus · Accepted Answer

Price discrimination occurs when different prices are charged to different consumers for the same product or service, not based on cost differences. Option C is an example of price discrimination because Albert receives a discount based on his status as a senior citizen.

Which of the Following Is an Example of Price Discrimination