Suppose Dublin Electronics Charges Regular Customers $60 for a Blu-Ray

question 170

Multiple Choice

Suppose Dublin Electronics charges regular customers $60 for a Blu-ray player but allows senior citizens to purchase the same item for $45.Is this likely to be a successful price discriminating strategy?

• A)Yes, firms price discriminate to maximize profits.
• B)No, price discrimination will not be effective because the store cannot prevent senior citizens from buying large quantities of Blu-ray players and reselling them for a profit.
• C)Yes, because senior citizens are likely to have a more elastic demand and therefore will be willing to pay a lower price compared to regular customers.
• D)No, because there are many different brands of Blu-ray players and consumers will shop around.

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Definitions:

Infectious Disease

Diseases caused by pathogenic microorganisms, such as bacteria, viruses, parasites, or fungi, that can be spread directly or indirectly from one person to another.

Clinical Illness

A condition characterized by a set of symptoms and signs experienced by patients, requiring medical treatment and care.

Recognizable Symptoms

Signs or indications of disease or illness that are easily identified or diagnosed.

Infection

The invasion and multiplication of microorganisms such as bacteria, viruses, and parasites that are not normally present within the body.