Price Discrimination Is Based on Differences in ________ Among Groups

question 5

Multiple Choice

Price discrimination is based on differences in ________ among groups of consumers and the differences in ________ that will result.

• A) cross elasticities of demand; revenues
• B) price elasticities of demand; profits
• C) quantities supplied; marginal revenues
• D) income elasticities of demand; marginal costs

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Definitions:

UCC

Refers to the Uniform Commercial Code, a complete collection of regulations that oversee every commercial transaction in the United States.

Manufacturer

An entity or individual that makes goods through a process involving raw materials, machinery, and labor.

Shipment

The process of transporting goods from one location to another.

Counteroffer

A proposal made in response to an original offer, changing its terms in the hopes of reaching an agreement.