Income Earned from the Sale of an Asset for More

question 31

Multiple Choice

Income earned from the sale of an asset for more than you paid for it is classified as

• A)dividend income.
• B)business income.
• C)capital gain.
• D)windfall.

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Definitions:

Peak-Load Pricing

Pricing strategy that involves charging higher prices during peak times when demand is higher and resources are more constrained.

Third-Degree Price Discrimination

A pricing strategy where different prices are charged to different segments of customers based on their willingness to pay.

Second-Degree Discrimination

A pricing strategy where prices are varied depending on quantity sold, such as bulk discounts, or according to product versions.

Peak-Load Pricing

Peak-load pricing is a strategy that involves charging higher prices during periods of high demand and lower prices during periods of low demand to manage usage and balance supply and demand.