When Pan United Airlines Gives a $400 Fare Discount to Persons

question 18

Multiple Choice

When Pan United Airlines gives a $400 fare discount to persons with student IDs,they are practicing:

• A) first-degree price discrimination.
• B) second-degree price discrimination.
• C) third-degree price discrimination.
• D) markup pricing.
• E) tying.

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Definitions:

Accrued Expenses

Expenses that have been incurred but not yet paid or recorded by the end of the accounting period.

Adjusting Entry

An accounting entry made at the end of an accounting period to record earnings or expenses that have occurred but are not yet entered in the accounts.

Asset Account

An account that shows the value of the assets a company controls, which can include cash, equipment, and real estate.

Accrued Interest

Interest that has been incurred but not yet paid, often related to bonds or loans.