Which of the Following Is a Real-World Example of First-Degree

question 13

Multiple Choice

Which of the following is a real-world example of first-degree price discrimination?

• A) A pizza parlor sells large and small pizzas. Although the large pizzas are twice as big as the small pizzas, they cost less than double the price of a small pizza.
• B) An electric company sells "blocks" of power at different prices. Specifically, any customer who buys more that Q₁ units of electricity can purchase additional units at a lower block price.
• C) Different prices are charged to different customers at a flea market.
• D) A movie theater charges senior citizens a cheaper price for movie tickets than it charges non-senior citizens for the same movie ticket.

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Definitions:

Salivary Amylase

An enzyme found in saliva that begins the digestive process by breaking down starches into simpler sugars.

Oligosaccharides

Short chains of monosaccharide units bound together, found in many plants and used in various biological roles.

Emulsify Lipids

The process of breaking down fats and oils into smaller droplets, typically through the action of bile acids in the digestive system, to aid in lipid digestion and absorption.

Hydrochloric Acid

A highly corrosive, strong mineral acid with many industrial uses, but within the stomach, it aids in digestion and kills bacteria.