When museums charge a lower admission fee to students and senior citizens, this form of pricing is known as ________.
A) perceived value pricing
B) third-degree price discrimination
C) first-degree price discrimination
D) second-degree price discrimination
E) psychological discounting

Question

Quizplus · Accepted Answer

Third-degree price discrimination involves charging different prices to different demographic groups based on their willingness or ability to pay. In this case, students and senior citizens are charged less, which is a classic example of third-degree price discrimination.

When Museums Charge a Lower Admission Fee to Students and Senior