Asked by
Nymani Reeves
on Dec 12, 2024
Verified
A major fruit juice manufacturer failed in its attempt to engage in price discrimination between students and all other consumers. What is the most likely explanation for this failure?
A) There was nothing to prevent the students from reselling the fruit juice to other consumers.
B) The two groups of consumers have different demand elasticities for fruit juice.
C) The cost of producing the product is relatively high.
D) Market demand for fruit juice is inelastic.
Reselling
The act of selling a product or service again, typically after buying it from the original seller.
Demand Elasticities
Various measures that quantify the sensitivity of demand for a good or service to changes in its price or other relevant factors.
Producing Cost
The total expense incurred in the creation of goods or services, including raw materials, labor, and overhead expenses.
- Acquire knowledge on the subject of price discrimination and the necessary conditions for its application.
- Separate the indispensable conditions from those that are not required for effective price distinction.
Verified Answer
KA
Learning Objectives
- Acquire knowledge on the subject of price discrimination and the necessary conditions for its application.
- Separate the indispensable conditions from those that are not required for effective price distinction.