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:

Neural Processing

The method by which the nervous system receives, interprets, and responds to signals from the sensory organs or other neural inputs.

Automatic Emotional Responses

Immediate and unconscious emotional reactions to certain stimuli or situations without deliberate thought.

Joseph LeDoux

A neuroscientist known for his work on survival circuits, including mechanisms of fear and emotion in the brain.

Cognitive Reactions

Mental processes as responses to external stimuli, involving perception, memory, judgment, and reasoning.