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:

Apprehensive

Feeling anxious or fearful that something bad or unpleasant will happen.

Psychoanalytic Perspective

A theory of personality and therapeutic technique that attributes thoughts and actions to unconscious motives and conflicts.

Phobias

Strong, unreasonable anxieties about particular things, actions, or scenarios that result in evasive actions.

Repressed Impulses

Desires or thoughts that are pushed out of the conscious mind into the unconscious due to being deemed unacceptable.