Price discrimination
A)is illegal in the U.S.
B)is a form of pricing where consumers pay different prices for a good.
C)allows firms to set a single intermediate price between consumers' low and high willingness to pay.
D)is when consumers use prices to discriminate between different quality products.

Question

Quizplus · Accepted Answer

Price discrimination is the practice of charging consumers different prices for the same good or service. This is often based on differences in consumers' willingness to pay, with some customers being charged a higher price than others. This is a common practice among businesses and is not illegal in the U.S. as long as it does not violate antitrust laws. Option A is incorrect as price discrimination is legal in the U.S. under certain conditions. Option C is incorrect as price discrimination involves charging different prices to different consumers, not setting an intermediate price. Option D is incorrect as consumers do not use prices to discriminate between different quality products - this is the role of the seller.

Price Discrimination