Price discrimination
A)Is illegal.
B)Rarely occurs in the airline industry.
C)Is a way for sellers to elicit the maximum willingness to pay from buyers.
D)Is a method used by sellers to pit one buyer against the other.

Question

Quizplus · Accepted Answer

Price discrimination is a pricing strategy where sellers charge different prices for the same product or service to different groups of consumers based on their willingness to pay. The goal is to elicit the maximum willingness to pay from buyers and increase profits. It is legal unless it is based on certain protected characteristics such as race, gender, or religion. Price discrimination is common in many industries, including airlines. In fact, airlines are known for their sophisticated and complex pricing strategies that involve different fares for different classes of seats, different times of travel, and different days of the week.

Price Discrimination