Which of the Following Would Not Be Considered Price Discrimination

question 65

Multiple Choice

Which of the following would not be considered price discrimination?

• A)Long distance telephone rates are cheaper late at night.
• B)Airline fares are cheaper if you reserve several weeks in advance.
• C)The price of lettuce is 59 cents a head and two for a dollar.
• D)The price of a brand-name prescription drug is higher than the price of a generic brand.
• E)Senior citizens pay less for a movie.

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Definitions:

Excess Demand

An instance where the market's need for a service or product surpasses the available supply.

Equilibrium Price

The price in the market where the amount of products provided matches the amount of products wanted.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a given period of time.

Supply

The overall quantity of a product or service accessible to buyers.