Question

Which of the following is an example of a ​price-discrimination​? A. IMAX charges​ $6 per movie ticket for children younger than​ 8, and​ $8.50 per movie ticket for adults. B. Greyhound records a greater ticket sale in summer than winter. C. Lower demand has resulted in a drop in car sales. D. A rise in fuel costs has raised air fares.

Answer 1

Option (A) is correct.

Step-by-step explanation:

There are three types of price discrimination:

(i) First degree or Perfect price discrimination:

(ii) Second degree price discrimination

(iii) Third Degree price discrimination

This example is lies under the third degree price discrimination because different price is charged for different category of people. In the third degree price discrimination, different price is charged from the different groups but same price is charged within the group. For example; Registration fees charged from SC, ST, OBC and General category people.