Which of the Following Statements About Price Discrimination Is True

question 58

Multiple Choice

Which of the following statements about price discrimination is true?

• A) It exists whenever consumers in a country are charged different prices for the same product.
• B) A necessary condition for profitable price discrimination is different price elasticities of demand in different countries.
• C) It is the use of price as a competitive weapon to drive weaker competitors out of a national market.
• D) It makes economic sense to charge the same prices across countries.

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Definitions:

Speakeasies

Illicit establishments that sold alcoholic beverages during the Prohibition era in the United States.

Louis Brandeis

An American lawyer and Associate Justice on the Supreme Court of the United States from 1916 to 1939, known for his advocacy of privacy rights and progressive policies.

Civil Liberties

Basic rights and freedoms guaranteed to individuals, often protected from government interference, such as freedom of speech and religion.

Free Speech

The right to express one's opinions openly without governmental restraint.