Which of the following is NOT an example of price discrimination by a firm?

• A. A grocery store charging the same price for all customers regardless of age or status
• B. A movie theater charging different prices for adults and children
• C. A coffee shop offering discounts to students
• D. An airline charging different fares based on booking time and flexibility

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the concept of price discrimination. Price discrimination occurs when a firm charges different prices to different customers for the same product or service, based on factors like age, status, purchase timing, or willingness to pay.
2. Step 2: Identify examples of price discrimination by checking if the firm charges different prices to different groups of customers for the same good or service.
3. Step 3: Analyze each option: - A movie theater charging different prices for adults and children is price discrimination because prices vary by customer group. - A coffee shop offering discounts to students is price discrimination because it charges students a different price. - An airline charging different fares based on booking time and flexibility is price discrimination because prices vary by purchase conditions.
4. Step 4: Examine the grocery store example: charging the same price for all customers regardless of age or status means there is no price variation among customers, so this is NOT price discrimination.
5. Step 5: Conclude that the grocery store charging the same price for all customers is the correct answer because it does not practice price discrimination.