Price Differentiation Is a Situation in Which

question 327

Multiple Choice

Price differentiation is a situation in which

• A) there are different prices for similar products reflecting differences in the marginal cost of providing the commodities to different groups of buyers.
• B) there are different prices for the same product that are not due to differences in the marginal cost of providing the commodity to different groups of buyers.
• C) consumers' comparison-shop.
• D) the demand curve is vertical.

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Definitions:

Medium Of Exchange

An intermediary instrument or system used to facilitate the sale, purchase, or trade of goods between parties.

Unit Of Account

A common unit for measuring the value of each good or service.

Store Of Value

Anything that retains its purchasing power over time.

Double Coincidence

Double Coincidence is a term used in economics to describe a situation where two parties each hold an item the other wants, allowing for an exchange without the need for a common medium of trade, like money.