A grocery store that offers one can of soup for $0.35 and three cans for $1.00 is engaging in
A) first-degree price discrimination.
B) second-degree price discrimination.
C) third-degree price discrimination.
D) The answer cannot be determined without additional information.

Question

Quizplus · Accepted Answer

Second-degree price discrimination involves pricing variations based on the quantity of the product purchased, not on the identity of the buyer or the time of purchase. In this case, the grocery store offers a lower price per can when customers buy three cans compared to buying just one, which is a classic example of second-degree price discrimination.

A Grocery Store That Offers One Can of Soup for $0.35