Alberto, a Carpenter, Was Hired by Raul for the Building

question 25

True/False

Alberto, a carpenter, was hired by Raul for the building season, through September 30 when his employment would end. During the summer Alberto regularly charged items on Raul's account at the lumber yard, and Raul always pays the bill; the lumber yard knew nothing of Alberto's contract with Raul. On October 1 Alberto, as he has done for several months, charged items on Raul's account, but these were for Alberto's personal use. Raul is not responsible for these items.

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Definitions:

Direct Price Discrimination

The practice of charging different prices to different consumers for the same good or service, based directly on the willingness of each customer to pay.

Elastic Demand

A situation where the demand for a product or service varies significantly in response to changes in price.

Low-value Group

A classification referring to items or individuals perceived as offering less benefit, importance, or financial value compared to others.

Price Discrimination

A pricing strategy where identical or substantially similar goods or services are sold at different prices by the same provider in different markets or to different buyers.