Consider the Following Statement: "Price Discrimination Is Harmful to Society

question 88

Multiple Choice

Consider the following statement: "Price discrimination is harmful to society and should not be tolerated under any circumstance." Why is this statement false?

• A)Price discrimination always leads to lower prices and higher quantities.
• B)Price discrimination can allow for some consumers to be made better off because they are able to buy a product or service that was otherwise unaffordable.
• C)Price discrimination leads to higher prices for all consumers and a reduction in consumer surplus.
• D)Price discrimination reduces total quantity exchanged and therefore reduces the sum of producer and consumer surplus.
• E)Price discrimination violates the Canadian Charter of Rights and Freedoms.

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Definitions:

Aggression

A range of behaviors that can result in both physical and psychological harm to oneself, others, or objects in the environment.

Instinctive

Relating to or denoting behaviors that are innate and automatic, performed without being based on prior experience or external cues.

Learning

An ongoing process that involves gaining and modifying information, beliefs, and skills through experience, instruction, or practice.

Important Human Instinct

Innate, biological inclinations crucial for survival or reproduction, such as fear responses or parental protectiveness.