Asked by
Kevin Ruffins
on Dec 12, 2024
Verified
Price discrimination refers to a system of pricing
A) based on buyer income rather than buyer demand conditions, so the poor pay more than the rich.
B) that is always more profitable than simple "single-price" pricing.
C) that forces customers who require more service to pay higher prices.
D) where consumer groups with a more elastic demand for the product are charged lower prices.
Single-Price
A pricing strategy where a product or service is sold at the same price to all customers in all markets.
Buyer Demand
The desire and willingness of consumers to purchase a particular good or service at a given price.
Buyer Income
The financial resources available to a consumer, which influence the person's ability to make purchases within the market.
- Understand the concept of price discrimination and its conditions.
Verified Answer
AM
Learning Objectives
- Understand the concept of price discrimination and its conditions.