Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Charging different prices to different consumers for the same product based on their willingness to pay
B
Selling products at a lower price to increase market share
C
Offering discounts to all customers regardless of their purchase behavior
D
Setting a single price for a product in all markets
Understanding the Answer
Let's break down why this is correct
Answer
Price discrimination is when a seller charges different prices to different customers for the same product or service. This can happen for various reasons, such as the customer's willingness to pay or their ability to pay. For example, a movie theater might charge children a lower ticket price than adults because children usually have less money to spend. Price discrimination can help businesses increase their profits and reach more customers, but it can also raise fairness issues if some people feel they are being charged too much. Overall, it can be efficient for businesses but may create concerns about equality among customers.
Detailed Explanation
Price discrimination means charging different prices to different people for the same item. Other options are incorrect because Some might think this means lowering prices to get more customers; This option suggests giving everyone discounts.
Key Concepts
price discrimination
Topic
Price Discrimination and Efficiency
Difficulty
easy level question
Cognitive Level
understand
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