Why doesn't a firm price discriminate based on income levels?
A) It would be nearly impossible to conveniently confirm any individual's income level.
B) It is illegal to ask someone their income levels.
C) It is immoral to price discriminate based on income levels.
D) It is common practice for firms to price discriminate based on income.

Question

Quizplus · Accepted Answer

Confirming an individual's income level can be difficult and inconvenient for the firm. Other forms of price discrimination such as age-based or location-based discrimination may be easier to implement.

Why Doesn't a Firm Price Discriminate Based on Income Levels