A Major Fruit Juice Manufacturer Failed in Its Attempt to Engage

question 72

Multiple Choice

A major fruit juice manufacturer failed in its attempt to engage in price discrimination between students and all other consumers. What is the most likely explanation for this failure?

• A) There was nothing to prevent the students from reselling the fruit juice to other consumers.
• B) The two groups of consumers have different demand elasticities for fruit juice.
• C) The cost of producing the product is relatively high.
• D) Market demand for fruit juice is inelastic.

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Definitions:

Chemical Compound

A substance formed from two or more elements chemically united in fixed proportions.

Genes

The basic physical and functional units of heredity, made up of DNA sequences that instruct how organisms are built and function.

Hereditary Characteristics

Traits and features that are passed from parents to offspring through genes.

Negatively Charged Particle

An elementary particle with a negative electric charge, such as an electron.