Which of the following is not an example of third-degree price discrimination?
A.
Reservati...
Social Studies, 04.04.2021 05:10 thawngmawi
Which of the following is not an example of third-degree price discrimination?
A.
Reservation pricing for each consumer.
B.
Discounted movie tickets for senior citizens.
C.
Lower prices for students.
D.
Manufacturer's coupons.
E.
Higher fares for business travellers.
Can third-degree price discrimination be effective if the different groups of consumers have different levels of demand but the same price elasticities?
If consumers have different levels of demand but the same price elasticities, then the firm's profits
A.
will increase because output will be different between the markets.
B.
will not increase because prices will be the same in both markets.
C.
will increase because prices will be the same in both markets.
D.
will increase because the firm will charge the consumers with a higher level of demand a lower price.
E.
will increase because the firm will charge the consumers with a higher level of demand a higher price.
Answers: 1
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