Of the Following, the Most Likely Example of Price Discrimination

question 111

Multiple Choice

Of the following, the most likely example of price discrimination is when:

• A) a firm sells different shoes for different prices.
• B) hotels charge different rates for the same rooms when conventions are held.
• C) restaurants charge different prices for chicken and beef.
• D) supermarkets charge different prices for oranges and apples.

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Definitions:

Higher Income

A level of earnings or revenue that is above average or an increase in financial earnings.

Marginal Utility

Marginal Utility is the additional satisfaction or benefit gained from consuming one more unit of a product or service.

Total Utility

Total contentment experienced through the use of a particular volume of goods or services.

Social Security System

The federal system of social insurance programs. It includes three separate programs that are financed through separate funds: the Old Age and Survivors Insurance (OASI) program, the Disability Insurance (DI) program, and the Health Insurance (HI), or Medicare program.