The Strategy Underlying Price Discrimination Is

question 89

Multiple Choice

The strategy underlying price discrimination is

• A)To charge higher prices to customers who have good substitutes available to them.
• B)To charge everyone the same price,but limit the quantity they are allowed to buy.
• C)To increase total revenue by charging higher prices to those with the less elastic demand for the product and lower prices to those with the more elastic demand.
• D)To reduce per unit cost by charging higher prices to those with the most inelastic demand and lower prices to those with the most elastic demand.

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Definitions:

Demand-Pull Inflation

Inflation that occurs when aggregate demand in an economy outpaces aggregate supply, leading to an increase in prices.

OPEC

The Organization of Petroleum Exporting Countries, a group consisting of 13 of the world's major oil-exporting nations, aiming to manage the supply of oil in an effort to set the price on the world market.

Cost-Push Inflation

Inflation caused by increased costs of production, such as higher prices for raw materials or wages, leading to higher final product prices.

Underemployment

Workers are overqualified for their jobs or work fewer hours than they would prefer.