Examples of second-degree price discrimination include:
A) the retailer charging more if a wealthy customer wants to buy something
B) early-bird specials at a restaurant offering lower-priced meals before 6 pm
C) the retailer charging less if a price-sensitive customer comes in
D) automobile and antiques dealers haggling with customers
E) None of these are examples of second-degree price discrimination

Question

Quizplus · Accepted Answer

Early-bird specials offer lower prices for customers who are willing to dine earlier in the evening, which is an example of second-degree price discrimination. The other options are not examples of second-degree price discrimination because they involve charging different prices based on the characteristics of the customer (wealth or price-sensitivity), rather than based on their willingness to pay different amounts for the same product or service.

Examples of Second-Degree Price Discrimination Include