Why Doesn't a Firm Price Discriminate Based on Income Levels

question 114

Multiple Choice

Why doesn't a firm price discriminate based on income levels?

• A) It would be nearly impossible to conveniently confirm any individual's income level.
• B) It is illegal to ask someone their income levels.
• C) It is immoral to price discriminate based on income levels.
• D) It is common practice for firms to price discriminate based on income.

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Definitions:

Ionic Compound

A chemical compound composed of ions held together by electrostatic forces termed ionic bonding.

Polar Nature

A characteristic of molecules that have an uneven distribution of electron density, resulting in regions of partial positive and negative charge which makes them interact with other polar substances including water.

Attractive Forces

Forces that cause atoms, ions, or molecules to come together, and include various types of chemical bonds and intermolecular interactions.

Solute Particle

Solute particles are the dissolved particles in a solution that interact with the solvent to form a homogeneous mixture.