An Example of Price Discrimination Is When

question 83

Multiple Choice

An example of price discrimination is when:

• A) movie theaters do not allow children into R-rated movies without a parent or guardian.
• B) you can purchase a new PC for half the price of a new Mac, even though they are both computers.
• C) Procter & Gamble charges $9 for a bottle of Tide laundry detergent, while the store brand costs the consumer significantly less, despite being somewhat similar products.
• D) out-of-state students pay more for the same education as in-state students.
• E) a single box of Froot Loops costs $3.50, but when purchased in a case of six, it costs only $3.00 per box.

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Definitions:

Oral Auction

A type of auction where bids are made verbally in the presence of an auctioneer and other bidders.

Bidders

Individuals or entities that offer a specific price for goods, services, or assets, typically in the context of auctions or tendering processes.

Expected Price

The price level that consumers, investors, or businesses predict or assume will prevail in the future based on current information.

Oral Auction

A traditional auction where bidders shout out their bid prices, and the highest visible bid at the end wins the item.