Price Discrimination Is More Likely in the Case of Services

question 208

Multiple Choice

Price discrimination is more likely in the case of services than in the case of goods because

• A) producers of goods usually do not face downward sloping demand curves.
• B) it is easier to distinguish customers with different elasticities of demand with respect to services than with goods.
• C) elasticities of demand vary more with services than with goods.
• D) it is more difficult to resell services.

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Definitions:

Fiber Optic Cable

A technology that uses glass or plastic fibers to transmit data at high speeds and volumes with minimal loss, used in telecommunications and network infrastructures.

Map Coordinate

A set of numbers that identifies the precise location of a point on a map, often represented in latitude and longitude.

Load

Load involves the amount of work, stress, or pressure applied on a system, structure, or individual, often assessed to manage capacity and performance.

Collection Point

A designated location where goods are gathered or aggregated from various sources, typically for further distribution or processing.