Which of the following is a real example of price discrimination?
A) Airlines set different prices for business people and vacationers.
B) Publishers charge high prices on hardback and low price on paperback books.
C) IBM's regular version of a printer that prints at 10 pages per minute is more expensive than the Series E that prints five pages per minute.
D) All of these examples are real.

Question

Quizplus · Accepted Answer

All of the examples given illustrate price discrimination, which is the practice of charging different prices to different customers for the same product or service. Airlines charge higher prices to business travelers who may be less price-sensitive and have more money to spend, while offering lower prices to vacationers who are more price-sensitive. Publishers charge more for hardback books, which may appeal to collectors or those who want to own the book as soon as it is released, while offering a lower price on paperback versions of the same book. IBM charges different prices for different versions of its printers based on their printing speed, with the faster printers being more expensive because they are often used in business settings where time is more valuable.

Which of the Following Is a Real Example of Price