Which of the Following Is Not an Example of Price

question 508

Multiple Choice

Which of the following is not an example of price discrimination by a firm?

• A)children's meals at a restaurant
• B)a natural gas company charging customers a higher rate in the winter than in the summer
• C)a senior citizens' discount
• D)coupons in the Sunday newspaper

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Definitions:

AC

Short for Air Conditioning, a system for controlling the humidity, ventilation, and temperature in a building or vehicle.

Price Effect

The impact on consumer behavior and purchase decisions resulting from a change in the price of a good or service.

Quantity Effect

The variation in overall income derived from altering the amount of a product sold, while keeping its price stable.

Marginal Revenue

The increase in revenue that results from the sale of one additional unit of a product or service.