Suppose Dublin Electronics Charges Regular Customers $90 for a Blu-Ray

question 165

Multiple Choice

Suppose Dublin Electronics charges regular customers $90 for a Blu-ray player but allows senior citizens to purchase the same item for $75.Is this likely to be a successful price discriminating strategy?

• A)Yes, firms price discriminate to maximize profits.
• B)No, price discrimination will not be effective because the store cannot prevent senior citizens from buying large quantities of Blu-ray players and reselling them for a profit.
• C)Yes, because senior citizens are likely to have a more elastic demand and therefore will be willing to pay a lower price compared to regular customers.
• D)No, because there are many different brands of Blu-ray players and consumers will shop around.

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Definitions:

Sex Chromosome

A type of chromosome involved in determining the sex of an organism, typically one of two kinds, either X or Y in many species.

CAH

Congenital Adrenal Hyperplasia, a genetic disorder affecting the adrenal glands and influencing the production of certain hormones.

Gender Identity

An individual's personal sense of their own gender, which may or may not correspond to the sex assigned at birth.

Social Adjustment

The process by which an individual modifies their behavior to align with the norms and expectations of a social group or society.