Which of the Following Is Needed for Price Discrimination to Work

question 4

Multiple Choice

Which of the following is needed for price discrimination to work?

• A)The firm must be able to identify the person's willingness to pay
• B)The high-price consumer cannot purchase the service at the low price
• C)Both a and b
• D)Neither a nor b

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Definitions:

Labor Force Participation Rate

The percentage of the total working-age population that is active in the labor market, either employed or actively seeking employment.

Adults

Individuals who have reached a specific age or maturity level, generally considered to be the age at which they can assume legal rights and responsibilities.

Unemployed

Individuals who are jobless, actively seeking work, and available to take up employment.

Structural Unemployment

Unemployment that results from industrial reorganization, typically due to technological change, rather than fluctuations in supply or demand.