Third-Degree Price Discrimination Exists When

question 43

Multiple Choice

Third-degree price discrimination exists when

• A)the seller knows exactly how much each potential customer is willing to pay and will charge accordingly.
• B)different prices are charged by blocks of services.
• C)when the seller can separate markets by geography,income,age,etc.,and charge different prices to these different groups.
• D)when the seller will bargain with buyers in each of the markets to obtain the best possible price.

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Definitions:

Independent Variables

Variables in an experiment or study that are manipulated or changed to determine their effects on dependent variables.

Observations

The act of measuring or recording data points or occurrences in a scientific or systematic manner for analysis.

Independent Variable

An independent variable is a variable that is manipulated in an experiment to see if it causes a change in another variable.

Multiple Regression Model

A statistical method that explains the relationship between one dependent variable and two or more independent variables.