TABLE 10- 1 -Consider the Following Statement: "Price Discrimination Is Harmful to Society

question 15

Multiple Choice

TABLE 10- 1 $$\begin{array} { | l | c | } \hline \text { Price } & \begin{array} { c } \text { Quantity } \\\text { Demanded }\end{array} \\\hline \$ 8 & 5 \\\hline \$ 7 & 6 \\\hline \$ 6 & 7 \\\hline \$ 5 & 8 \\\hline \$ 4 & 9 \\\hline \$ 3 & 10 \\\hline \$ 2 & 11 \\\hline\end{array}$$
-Consider the following statement: "Price discrimination is harmful to society and should not be tolerated under any circumstance." Why is this statement false?

• A)Price discrimination leads to higher prices for all consumers and a reduction in consumer surplus.
• B)Price discrimination always leads to lower prices and higher quantities.
• C)Price discrimination reduces total quantity exchanged and therefore reduces the sum of producer and consumer surplus.
• D)Price discrimination can allow for some consumers to be made better off because they are able to buy a product or service that was otherwise unaffordable.
• E)Price discrimination violates the Canadian Charter of Rights and Freedoms.

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Definitions:

Hallucinations

Sensory experiences that appear real but are created by the mind, often occurring in the absence of any external stimuli.

Systematic Desensitization

A behavior therapy method used to reduce phobic or anxiety responses, through gradual exposure to the feared object or situation combined with relaxation or coping techniques.

Aversive Conditioning

A method of behavior conditioning in which noxious stimuli are associated with undesirable or unwanted behaviors in order to discourage them.

Token Economy

A behavioral modification method that involves giving tokens as rewards for desired behaviors, which can later be exchanged for various privileges or treats.