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Business, 06.05.2020 19:09 isaacchan

Complete the following table by indicating whether or not each scenario is an example of price discrimination.

Hint: To determine whether a scenario is an example of price discrimination, think about whether the market can be segmented into two groups that pay different prices for the same good.

Scenario Price Discrimination Yes Price Discrimination No
Most restaurants will supply a free dessert if it is the customer's birthday. Assume that this is not specifically advertised by restaurants.
Every year Lesspay ShoeSource promotes its giant BOGO sale-buy one pair of shoes and get one half off through commercials and other means of advertising. Note that the price of one pair of shoes is the regular retail price, so a customer must buy two pairs of shoes to receive the discount.

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Complete the following table by indicating whether or not each scenario is an example of price discr...
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