In ________, the seller charges a separate price to each customer depending on the intensity of his or her demand.
A) second-degree price discrimination
B) third-degree price discrimination
C) psychological discounting
D) special-customer pricing
E) first-degree price discrimination

Question

Quizplus · Accepted Answer

First-degree price discrimination, also known as perfect price discrimination, occurs when a seller charges a different price for each unit sold or to each customer based on their willingness to pay. This approach aims to capture the maximum amount of consumer surplus for the seller by tailoring prices to the individual demand of each customer.

In ________, the Seller Charges a Separate Price to Each