Which Would Definitely Not Be an Example of Price Discrimination

question 319

Multiple Choice

Which would definitely not be an example of price discrimination?

• A)A movie theater charges children less than adults for a movie ticket.
• B)Universities charge higher tuition for out-of-state residents than for in-state students.
• C)A doctor charges for services according to the income of individual patients.
• D)An electric power company charges less for electricity used during off-peak hours, when production costs are lower.

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Definitions:

Lessee

The party in a lease agreement who obtains the right to use an asset in exchange for periodic lease payments.

Residual Value Guarantees

Promises made by lessees to lessors that the asset being leased will have a certain value at the end of the lease term.

Lessors

Parties that lease or rent out assets to lessees in exchange for periodic payments.

Leased Assets

Assets that are used by an entity under the terms of a lease agreement, which entails periodic payments for a specified time.