Which of the Following Is the Best Example of Price

question 122

Multiple Choice

Which of the following is the best example of price discrimination?

• A)a cellular telephone company charging lower rates to weekend callers than weekday callers
• B)a gas station charging less per gallon to customers who pay cash than customers who use a credit card
• C)an auto insurance company charging a higher premium to a seventeen year old boy with a driving record that includes three accidents than the premium charged to a middle-aged driver with a clean driving record
• D)a private attorney charging higher fees to clients receiving special services than clients receiving regular services

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Definitions:

Higher Tariffs

Increased taxes imposed on imported goods, typically used to protect domestic industries from foreign competition and raise government revenue.

U.S. Jobs

Employment opportunities available in the United States, encompassing various sectors, industries, and roles.

Imports

Items or offerings that enter into a nation from abroad aimed at being sold or employed.

Domestic Supply and Demand

Refers to the quantity of a product or service available and the desire for it within a single country.