The Strategy of Charging Different Prices to Different Customers,for the Same

question 39

Multiple Choice

The strategy of charging different prices to different customers,for the same product,based on the differences in their demand elasticities is referred to as:

• A)predatory pricing.
• B)price skimming.
• C)arbitrage.
• D)price discrimination.

---

Definitions:

Agent of Necessity

A person who is appointed to act on behalf of another in situations of urgent necessity, without prior authorization from the principal.

Extravagance

The act or habit of spending more money than is necessary or wise; often associated with lavish or luxurious expenditure.

Credit Card

A plastic card issued by banks or financial institutions allowing the holder to borrow funds at the point of sale, which they then pay back at a later date.

Non-necessary Purchases

Expenditures on items or services that are not essential for basic living or business operations.