Which of the Following Firms Are Examples of Price Discrimination

question 60

Multiple Choice

Which of the following firms are examples of price discrimination?

• A)United Airlines charges customers who book 14 days ahead a lower price than those who donʹt.
• B)Chevron gas stations charges customers 20 cents more per gallon if they choose the premium grade over the regular unleaded.
• C)The local carwash charges drivers of minivans and large SUVʹs a $2.00 ʺlarge vehicleʺ surcharge.
• D)GEICO, an insurance company, charges higher rates to those who received more than one speeding ticket in the last 6 months.

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Definitions:

Variable Ratio

A reinforcement schedule in which responses are rewarded after a varied number of responses, enhancing motivation.

Puzzle Box

An experimental apparatus used in animal learning studies, especially with cats, to observe problem-solving behavior when an animal is placed in a confined space with a mechanism to open a door.

Mild Shocks

Low-intensity electrical stimuli used in various psychological experiments to study behavior, learning, and perception.

Operant

An action that is performed on an environment and has consequences.