Which of the following is a real-world example of first-degree price discrimination?
A)A pizza parlor sells large and small pizzas. Although the large pizzas are twice as big as the small pizzas, they cost less than double the price of a small pizza.
B)An electric company sells "blocks" of power at different prices. Specifically, any customer who buys more that Q1 units of electricity can purchase additional units at a lower block price.
C)Different prices are charged to different customers at a flea market.
D)A movie theater charges senior citizens a cheaper price for movie tickets than it charges non-senior citizens for the same movie ticket.

Question

Quizplus · Accepted Answer

First-degree price discrimination involves charging different prices to different customers based on their willingness to pay. The scenario with different prices charged to different customers at a flea market is an example of this, as sellers may adjust prices for each buyer based on perceived willingness to pay or negotiation outcomes.

Which of the Following Is a Real-World Example of First-Degree