Which of the following is the best example of intertemporal price discrimination?
A)Awarding financial aid to offset college tuition fees
B)Releasing movies on DVD six months after they are released in a theater
C)Charging less for a second pizza after the consumer has paid the full price for the first pizza
D)Charging people with health care insurance more for medical care relative to those without insurance

Question

Quizplus · Accepted Answer

Intertemporal price discrimination involves charging different prices for the same good or service based on when the consumer chooses to purchase it. Releasing movies on DVD six months after they are released in a theater is a good example of this. The movie studios charge a higher price for the theater experience, and then charge a lower price for those who are willing to wait and purchase the DVD later.

Which of the Following Is the Best Example of Intertemporal