Which of the Following Is a Real Example of Price

question 246

Multiple Choice

Which of the following is a real example of price discrimination?

• A) Airlines set different prices for business people and vacationers.
• B) Publishers charge high prices on hardback and low price on paperback books.
• C) IBM's regular version of a printer that prints at 10 pages per minute is more expensive than the Series E that prints five pages per minute.
• D) All of these examples are real.

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Definitions:

Expected Inflation

Expected inflation is the anticipated rate at which the general level of prices for goods and services will rise over a period, eroding purchasing power.

Interest Rates

The percentage charged or paid for the use of money, typically expressed on an annual basis, affecting loans, savings, and investments.

Unlimited Liability

A legal structure where business owners are personally responsible for all of the company's debts and liabilities.

Partnership Interests

Shares of ownership in a partnership, entitling the partners to a portion of the partnership's profits and losses.