Why Might a Producer Practice Price Discrimination

question 254

Multiple Choice

Why might a producer practice price discrimination?

• A)to make its products more affordable to those with low incomes
• B)to maximize economic efficiency
• C)to maximize profits
• D)to maximize quantity demanded

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Definitions:

Linear Effects

The impact on a dependent variable that is directly proportional to the change in an independent variable.

Coefficient

A constant or numerical value that precedes and multiplies the variable within an algebraic expression.

Neck

The narrow part connecting two larger parts or structures, such as the part of a bottle connecting its body to its opening or the part of the body that connects the head to the torso.

Measurement Unit

A standardized quantity used to express the size, amount, or degree of a physical quantity.