Which of the following is an example of price discrimination?

• A. A bakery lowering prices for all products at the end of the day
• B. A gas station charging the same price for gasoline regardless of payment method
• C. A grocery store setting the same price for all customers
• D. A movie theater charging lower ticket prices to students than to adults

Answer: (D)

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 product, not based on cost differences but on willingness or ability to pay.
2. Analyze each option to see if the price difference is based on customer characteristics or timing rather than cost changes.
3. For the bakery lowering prices for all products at the end of the day, note that the price reduction applies to all customers equally, so it is not price discrimination but a general discount.
4. For the gas station charging the same price regardless of payment method and the grocery store setting the same price for all customers, these are examples of uniform pricing, not price discrimination.
5. For the movie theater charging lower ticket prices to students than to adults, recognize this as price discrimination because the theater charges different prices based on customer group (students vs. adults) for the same product (movie ticket).