Question

Price discrimination Question 29 options:

A) is a type of nonuniform pricing.
B) forces producers to make a tradeoff between charging low prices or high prices.
C) works because consumers are ignorant about the practice.
D) is a way to legally charge a higher price to people you don't like.

Answer 1

The answer is A) is a type of nonuniform pricing.

Step-by-step explanation:

Price discrimination is the pricing methodology where supplier will put different price toward different customers/ groups of customer based on the supplier's understanding of that customers/ groups of customer on how much they want to spend on supplier's products.

The strategy because different group of customer will have different demand, price sensitivity and different use thus valuation to a product ( thus C as not correct).

D is not correct because Law is less likely to intervene civil transactions.

B is not correct because producers does not have to make any tradeoff in price setting under this strategy; insteade, they set price based on their understanding of customers.