Which of the Following Is an Example of Price Discrimination

question 466

Multiple Choice

Which of the following is an example of price discrimination?

• A)An online bookstore charges more for overnight shipping than standard shipping when customers buy books from it.
• B)Airline tickets are more expensive for first-class seats than for coach.
• C)Hotel rates for AAA members are lower than for nonmembers.
• D)All of the above are correct.

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Definitions:

Medicare Withholding

The portion of a U.S. employee's paycheck that is automatically deducted and contributed to the Medicare program.

Social Security Withholding

The process by which employers deduct a portion of an employee's salary to contribute to the Social Security program.

Federal Income Tax Withholding

The amount of federal income tax withheld from an employee's paycheck, based on their earnings and tax filing status.

Net Pay

The amount of money remaining from an employee's gross pay after deductions like taxes, insurance premiums, and retirement contributions have been subtracted.