Question

Which of these is an example of third-degree price discrimination?

(A) charging different prices to consumers at a flea market
(B) charging different prices at a used car dealership
(C) charging block rates on utilities
(D) charging airline business passengers and regular travelers different prices

Answer 1

(D) charging airline business passengers and regular travelers different prices

Step-by-step explanation:

Third degree price discrimination – the price varies according to consumer attributes such as age, sex, location, and economic status. Price discrimination is present throughout commerce. Examples include airline and travel costs, coupons, premium pricing, gender based pricing, and retail incentives.