Price Discrimination Refers to a System of Pricing

question 74

Multiple Choice

Price discrimination refers to a system of pricing

• A) based on buyer income rather than buyer demand conditions, so the poor pay more than the rich.
• B) that is always more profitable than simple "single-price" pricing.
• C) that forces customers who require more service to pay higher prices.
• D) where consumer groups with a more elastic demand for the product are charged lower prices.

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Definitions:

Risk Taking

The act of engaging in a behavior or decision that has the potential for a negative outcome, in the hope of achieving a positive result.

Facilitating Functions

Activities and services that support and enhance the marketing, distribution, and consumption of products, such as transportation and financing.

Attractive

Having qualities that appeal to an audience; often used in marketing to describe products or services that draw customer interest.

Buyers

Individuals or entities that purchase goods or services for personal use, resale, or production purposes.