Which of the following is true of intertemporal price discrimination?
A)In this form of price discrimination each consumer is charged his/her full willingness to pay.
B)In this form of price discrimination groups are charged different prices according to the time of purchase.
C)In this form of price discrimination monopolists capture the entire consumer surplus.
D)In this form of price discrimination a consumer is charged a fixed fee in each time period.

Question

Quizplus · Accepted Answer

Intertemporal price discrimination involves charging different prices based on the time of purchase, such as charging higher prices during peak demand periods and lower prices during off-peak periods. This form of price discrimination does not necessarily involve charging each consumer their full willingness to pay or capturing the entire consumer surplus, nor does it necessarily involve a fixed fee in each time period.

Which of the Following Is True of Intertemporal Price Discrimination