Which of These Is an Example of Third-Degree Price Discrimination

question 128

Multiple Choice

Which of these is an example of third-degree price discrimination?

• A) charging airline business passengers and leisure travelers different prices
• B) charging block rates on utilities
• C) charging different prices to consumers at a flea market
• D) charging different prices at a used car dealership

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Definitions:

Payee

The party in whose favor a check, draft, or note is made, entitled to receive the payment from the payer.

Drawer

The person or entity that writes a check or draft instructing the drawee to pay someone else.

Internal Control

A system within a business that oversees its operations and financial processes to ensure accuracy and compliance.

Major Deposit

A significant amount of money placed in a financial institution or investment, often referring to a sizable transaction that impacts financial statements.