Why Is Price Discrimination Legal but Not Discrimination Based on Race

question 137

Multiple Choice

Why is price discrimination legal but not discrimination based on race or gender?

• A)because price discrimination increases profits and therefore tax revenues for the government, but discrimination based on race or gender reduces tax revenues
• B)because price discrimination reduces deadweight loss, but discrimination based on race or gender increases deadweight loss
• C)because price discrimination involves charging people different prices based on their willingness to pay rather than on the basis of arbitrary characteristics
• D)because price discrimination enables firms to increase output and employment, but race- or gender-based discrimination reduces employment

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Definitions:

Warning

An alert or notification about potential danger, risks, or undesirable outcomes, intended to prompt preventative action.

High-Level Position

A role or job that is of significant importance or hierarchy within an organization, often involving leadership responsibilities and strategic decision-making.

Prestige

Refers to the high standing or respect gained by accomplishments, influence, or wealth in society or a specific field.

Power

The power or capability to guide or affect the actions of others or the direction of events.