Which of the Following Is Not an Example of Price

question 9

Multiple Choice

Which of the following is not an example of price discrimination?

• A)IBM charges business users of its laser printer more than home users
• B)Intel offered faster and slower versions of a computer chip
• C)An amusement park charges the same admission fee to local residents and out-of-towners
• D)Adobe stripped some features from Photoshop to offer a cheaper version
• E)Holders of Nevada driver's licenses pay less to ride the Las Vegas monorail

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Definitions:

Consumer Surplus

Consumer surplus is the difference between the total amount that consumers are willing and able to pay for a good or service and the total amount they actually pay.

Equilibrium

A state in a market where the quantity of goods supplied is equal to the quantity of goods demanded, with no pressure to change the price or quantity.

Price Ceiling

A government-imposed limit on how high a price can be charged for a product or service, often set below the equilibrium price to keep goods affordable.

Consumer Surplus

The disparity between what consumers are ready and able to spend for a product or service and the amount they end up paying.