Which of the Following Is a Real Example of Price

question 246

Multiple Choice

Which of the following is a real example of price discrimination?

• A) Airlines set different prices for business people and vacationers.
• B) Publishers charge high prices on hardback and low price on paperback books.
• C) IBM's regular version of a printer that prints at 10 pages per minute is more expensive than the Series E that prints five pages per minute.
• D) All of these examples are real.

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Definitions:

Demand

The desire to purchase goods and services backed by the ability and willingness to pay, at a given price level within a specific time period.

Quantity Demanded

refers to the total amount of a good or service that consumers are willing and able to purchase at a specific price level in a given period.

Demand

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

CDs

Certificates of Deposit, savings certificates with a fixed maturity date and specified fixed interest rate, offering a low-risk investment option.