Which Case Best Represents a Case of Price Discrimination

question 13

Multiple Choice

Which case best represents a case of price discrimination?

• A) An insurance company offers discounts to safe drivers.
• B) A major airline sells tickets to senior citizens at lower prices than to other passengers.
• C) A professional baseball team pays two players with identical batting averages different salaries.
• D) A utility company charges less for electricity used during off-peak hours, when it does not have to operate its less-efficient generating plants.

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Definitions:

Mouth

The opening in an organism's body through which food is ingested.

Pancreas

An organ in the abdominal cavity that plays a crucial role in digestion and the regulation of blood sugar by producing enzymes and hormones like insulin and glucagon.

Esophagus

A muscular tube that connects the throat to the stomach, transporting swallowed food and liquids.

Throat

The anterior part of the neck, housing the pharynx and vocal cords, and leading to the esophagus and larynx.