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:

Feminist Psychologists

Psychologists who study and advocate for equality, women's rights, and the elimination of gender discrimination in mental health.

Methodological Reasons

The rationale or justification related to the choice, planning, and implementation of specific methods or procedures in research or inquiry.

Social Context

The environmental and situational surroundings that shape individuals' behaviors, identities, and social interactions.

Social Power

The ability of an individual or group to influence or control others within a social structure.