Which Case Best Represents a Case of Price Discrimination

question 318

Multiple Choice

Which case best represents a case of price discrimination?

• A)An insurance company offers discounts to safe drivers.
• B)A major airline sells tickets to senior citizens at lower prices than to other passengers.
• C)A professional baseball team pays two players with identical batting averages different salaries.
• D)A utility company charges less for electricity used during off-peak hours, when it does not have to operate its less-efficient generating plants.

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Definitions:

Compensation

A psychological strategy whereby an individual offsets perceived deficiencies in one area through excellence in another area, or the payment to someone for work performed.

Type A Personality

A personality type characterized by high levels of competitiveness, self-urgency, hostility, and a constant sense of time pressure.

Heart Disease

Heart disease encompasses a range of conditions affecting the heart, including coronary artery disease, heart rhythm problems, and heart defects.

Karen Horney

A psychoanalyst known for her theory of neurotic needs and her work on the psychology of women.