Which of the following is NOT an example of price discrimination?

• A. A grocery store charges the same price for milk to all customers.
• B. A software company offers student discounts on its products.
• C. An airline charges higher prices for last-minute bookings compared to advance purchases.
• D. A movie theater charges different prices for adults and children.

Answer: (A)

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 consumers' willingness to pay or other characteristics.
2. Analyze each option to see if the price varies among different groups or situations:
3. Option 1: A grocery store charges the same price for milk to all customers. Since the price is uniform regardless of the customer, this is NOT price discrimination.
4. Option 2: A software company offers student discounts. This means different prices are charged based on customer type, which is price discrimination.
5. Option 3: An airline charges higher prices for last-minute bookings compared to advance purchases. Different prices based on timing reflect price discrimination.
6. Option 4: A movie theater charges different prices for adults and children. Different prices based on customer category is price discrimination.