Service Workers Are Likely to Receive Higher Compensation If Their

question 45

Multiple Choice

Service workers are likely to receive higher compensation if their customer is

• A)an individual consumer.
• B)a family.
• C)a business organization.
• D)a college student.
• E)another service worker.

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Definitions:

Direct Price Discrimination

A pricing strategy where a seller adjusts prices for different customers based on observable personal characteristics or willingness to pay.

Elastic Demand

A situation where the demand for a good or service greatly changes in response to changes in price.

Direct Price Discrimination

A pricing strategy where a seller charges different prices to different customers for the same product or service, based on their willingness to pay.

Inelastic Demand

A situation in which demand for a good or service is barely affected by changes in price.