Question

When museums charge a lower admission fee to students and senior citizens, this form of pricing is known as ________. third-degree price discrimination second-degree price discrimination first-degree price discrimination psychological discounting perceived value pricing?

Answer 1

When museums charge a lower admission fee to students and senior citizens, this form of pricing is known as price discrimination.

Price discrimination is a way of changing the prices for something based on time of day, amounts sold, or who they are sold to. This type of discrimination is done to try and maximize profits in the largest way possible.

Answer 2

The correct answer is letter "C": third-degree price discrimination.

Step-by-step explanation:

Third-degree price discrimination takes place when the same good is charged at a different price because of consumers' features such as age, sex, or location. For price discrimination to be legal, usually disfavored factors are considered to charge less than average to some customers.