In Order for Price Discrimination to Exist

question 16

Multiple Choice

In order for price discrimination to exist

• A)markets must be capable of being separated.
• B)markets must be interdependent.
• C)different demand price elasticities must exist in different markets.
• D)demand price elasticities must be identical in all markets.
• E)Both A and C

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Definitions:

United States

A country located in North America, consisting of 50 states, a federal district, five major self-governing territories, and various possessions, known for its large economy and advanced technology.

Import

The act of bringing goods or services into a country from abroad for sale.

U.S. Tariff

A tax imposed by the United States government on imported or, less commonly, exported goods.

Oil

A viscous liquid derived from petroleum, mainly used for fuel, heating, and lubrication.