All of the Following Except One Are Examples of Price

question 90

Multiple Choice

All of the following except one are examples of price discrimination.Which is the exception?

• A)An airline charges different prices to different travelers.
• B)A telephone company charges different rates according to the time of use.
• C)A professional gardener is able to buy plants at a lower price than a householder can.
• D)An electricity company charges lower rates during the daytime compared to night time.
• E)A hairdresser charges different rates according to the age of his clients.

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Definitions:

Discount Rate

The rate of interest that central banks impose on the credits they extend to commercial banks or financial entities.

Planned Investment

The amount of spending by businesses on capital goods, such as new equipment and buildings, that is intended for future use and production.

Monetary Policy

The process by which the monetary authority of a country controls the supply of money, often targeting an inflation rate or interest rate to ensure stability and economic growth.

Interest Rates

Interest rates are the cost of borrowing money or the reward for saving, determined by the supply and demand for credit, inflation, and central bank policies. This rate impacts consumer spending, investment, and economic growth.