Which of These Examples Is an Example of Price Discrimination

question 85

Multiple Choice

Which of these examples is an example of price discrimination?

• A)Goods are marked down on sale.
• B)Wholesale prices differ from retail prices.
• C)Seniors pay one price at the movie theater and adults pay more.
• D)Cereal manufacturers put discount coupons inside their cereal boxes.

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Definitions:

Salvage Value

An asset's projected financial value at the end of its viability period.

Depreciation Expense

An accounting method for allocating the cost of a tangible asset over its useful life, representing the asset's consumption, wear and tear, or obsolescence.

Straight-Line Method

The straight-line method is a depreciation technique that allocates an equal amount of depreciation expense for a fixed asset to each year of its useful life.

Salvage Value

The estimated market valuation of an asset following the end of its useful duration.