Which of the following is an example of price discrimination?

• A. A movie theater charging different ticket prices for adults, children, and seniors
• B. A grocery store selling apples at the same price to all customers
• C. A clothing store offering a seasonal sale to all customers
• D. A gas station charging the same price for gasoline regardless of time of day

Answer: (A)

Verified step by step guidance

1. Understand the concept of price discrimination: it occurs when a seller charges different prices to different groups of consumers for the same good or service, based on their willingness or ability to pay, rather than differences in cost.
2. Identify the key characteristic of price discrimination, which is charging different prices to different groups for the same product or service.
3. Analyze each option to see if it involves charging different prices to different groups for the same product or service.
4. Recognize that a movie theater charging different ticket prices for adults, children, and seniors fits the definition of price discrimination because the same service (movie admission) is sold at different prices based on customer group.
5. Note that the other options involve uniform pricing or sales applied equally to all customers, so they do not represent price discrimination.