Senior citizens can buy movie tickets at a lower price than the general public. This is an example of
A) age discrimination.
B) demand discrimination.
C) price discrimination.
D) price differentiation.
Which of the following is NOT a precondition for price discrimination?
A) The product cannot be resold to another customer.
B) The price elasticities of demand are different for each group of consumers.
C) The product is a durable good.
D) The seller must have some market power.
Which of the following is LEAST likely to be able to regularly engage in price discrimination?
A) a farmer
B) an airline
C) a university
D) a producer of copyrighted computer software
An upscale fusion bistro in a small town charges higher prices for the same menu items at dinner time than at lunch time. Does the bistro necessarily practice price discrimination? Explain your answer.