Which of the Following Is NOT a Principle of Price

question 260

Multiple Choice

Which of the following is NOT a principle of price discrimination?

• A) It is more profitable to set different prices in markets with different demand curves than a single price that covers all markets.
• B) To maximize profit the firm should set a higher price in markets with more elastic demand.
• C) To maximize profit the firm should set a higher price in markets with more inelastic demand.
• D) Arbitrage makes it difficult for a firm to set different prices in different markets thereby reducing the profit from price discrimination.

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Definitions:

Supply Chain Intermediaries

Supply chain intermediaries are entities or individuals involved in the process of moving a product or service from the producer to the consumer.

Channel Member

An entity that participates in the distribution channel, like manufacturers, wholesalers, and retailers, helping goods reach their final consumers.

Retailer's Responsibility

The accountability held by retail businesses to ensure the quality, safety, and ethical sourcing of their products, along with providing good customer service.

Customers' Expectations

The beliefs or standards that consumers have about the performance, value, and quality of goods or services.