Which of the following is an example of price discrimination?
A) Firm A sells its output for less than Firm B.
B) Firm C doubles the price of its output given a large increase in market demand.
C) Firm D is the only seller of a product.
D) Firm E gives senior citizens a 10% discount.

Question

Quizplus · Accepted Answer

Price discrimination is the practice of charging different prices to different customers for the same product or service. Firm E giving senior citizens a discount is an example of price discrimination based on age.

Which of the Following Is an Example of Price Discrimination