AskSia

Plus

Which of the following is a real-world example of a price discriminator? A) A c...

Nov 22, 2023

Which of the following is a real-world example of a price discriminator? A) A cinema charging a lower ticket price for students B) A farmer selling apples at a consistent price C) A convenience store charging the same price for all soft drinks D) A manufacturer producing goods at a constant cost

A

Key Concept

Price Discrimination

Explanation

Price discrimination occurs when a seller charges different prices to different customers for the same product or service, where the price differences do not reflect cost differences. A cinema charging a lower ticket price for students is an example of price discrimination, often referred to as third-degree price discrimination, where different prices are set for different segments of the market (in this case, students versus regular customers).