In General, Price Discrimination Exists Because

question 60

Multiple Choice

In general, price discrimination exists because:

• A) higher prices are required when costs are higher.
• B) lower prices are possible when profits are not a goal of the entrepreneur.
• C) higher prices are charged because some customers are willing to pay more.
• D) lower prices encourage arbitrage.

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Definitions:

Lower Incomes

Lower Incomes refer to the earnings that fall below the average or median income levels within a specific area or population.

Proportional Income Tax

A tax system where the tax rate is constant, regardless of the income level; everyone pays the same percentage of their income.

Taxes

Compulsory financial charges imposed by a government on individuals, corporations, and transactions to fund public expenditures.

Proportional Tax

A taxation system where the tax rate remains constant regardless of the amount of income or value of the goods.