Which of the following is (are)price discrimination?
i.charging different prices based on differences in production cost
ii.charging business flyers a higher airfare than tourists
iii.charging more for the first pizza than the second
A) i only
B) ii only
C) ii and iii
D) i and iii
E) i, ii, and iii

Question

Quizplus · Accepted Answer

Price discrimination involves charging different prices to different consumers for the same product or service, not based on differences in production cost, but rather on what the market will bear. Charging business flyers more than tourists (ii) and charging more for the first pizza than the second (iii) are examples of price discrimination strategies based on consumer willingness to pay and purchase quantity, respectively.

Which of the Following Is (Are)price Discrimination