Individual Price Discrimination Is Used When

question 87

Multiple Choice

Individual price discrimination is used when

• A)firms are dealing with individual consumers, such as in a line at the coffee shop.
• B)firms cannot easily determine consumers' reservation prices.
• C)firms are selling to non-local buyers.
• D)salespeople are in a difficult industry, such as auto sales.

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Definitions:

Protection

An alternative term for trade protection; policies that limit imports.

Foreign Trade

Involves the exchange of goods and services between countries, can be through importing or exporting.

Import Tariffs

Taxes imposed by a government on goods and services imported from other countries to protect domestic industries from foreign competition.

Quotas

Quotas are government-imposed trade restrictions that limit the number or monetary value of goods that can be imported or exported during a specific time period.