Second-Degree Price Discrimination Occurs When

question 47

Multiple Choice

Second-degree price discrimination occurs when

• A)different prices are charged for different blocks of services.
• B)different groups of buyers are charged different prices based on their price elasticities of demand.
• C)a different price is charged for each amount of a product purchased.
• D)None of the above

---

Definitions:

Substitute

A good whose demand increases when the price of another good increases. For example, two brands of cola soft drinks are substitutes.

Complement

A good or service that is used together with another good or service, increasing its demand.

Income Increase

A rise in the amount of money received by individuals or entities, typically through earnings, investments, or bonuses.

Normal Good

A good for which demand increases when consumer income rises, and falls when consumer income decreases, all other factors being equal.