Which of the Following Is a Real-World Example of First-Degree

question 11

Multiple Choice

Which of the following is a real-world example of first-degree price discrimination?

• A)A pizza parlor sells large and small pizzas. Although the large pizzas are twice as big as the small pizzas, they cost less than double the price of a small pizza.
• B)An electric company sells "blocks" of power at different prices. Specifically, any customer who buys more that Q1 units of electricity can purchase additional units at a lower block price.
• C)Different prices are charged to different customers at a flea market.
• D)A movie theater charges senior citizens a cheaper price for movie tickets than it charges non-senior citizens for the same movie ticket.

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Definitions:

German Banks

Financial institutions located in Germany, known for their significant role in both the domestic and international banking sectors.

Economic Depression

A long-term downturn in economic activity characterized by high unemployment, low consumer spending, and business failures.

Financial Capitals

Cities that serve as major hubs for financial services, banking, and investment, impacting global finance.

Population Increase

The growth in the number of individuals within a population, often attributed to factors like higher birth rates and lower mortality rates.