Customers who purchase an audio CD from Sally's Sounds are charged 20% more than customers who purchase the audio CD from the Sally's Sounds website. This is an example of
A)perfect price discrimination.
B)price discrimination.
C)deadweight loss.
D)socially inefficient output.

Question

Quizplus · Accepted Answer

This is an example of price discrimination, as the seller is charging different prices to different groups of customers based on their willingness to pay.

Customers Who Purchase an Audio CD from Sally's Sounds Are