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Multiple Choice
Which of the following would definitely not be an example of price discrimination?
A
An airline charging different fares for tickets purchased at different times
B
A software company offering student discounts on its products
C
A bakery selling all loaves of bread at the same price regardless of customer
D
A movie theater charging different prices for adults and children
Verified step by step guidance
1
Understand the concept of price discrimination: it occurs when a seller charges different prices to different consumers for the same good or service, not based on cost differences but on willingness to pay or other factors.
Analyze each option to see if the price differences are based on different consumer groups or purchase conditions, which is characteristic of price discrimination.
For the airline charging different fares at different times, recognize this as a form of price discrimination called dynamic pricing, where prices vary based on purchase timing and demand.
For the software company offering student discounts, identify this as third-degree price discrimination, where different groups (students vs. others) are charged different prices.
For the bakery selling all loaves of bread at the same price regardless of customer, note that there is no price variation among customers, so this is not price discrimination.