What is price discrimination?
A. Charging one price for all customers
B. Charging different prices to different groups
C. Giving free items to poor people
D. Fixing prices with other companies
Answer (2)
The correct answer is B. Charging different prices to different groupsPrice discrimination is a pricing strategy where a seller charges different prices to different groups of customers for the same product or service. This can be based on factors like age, location, time of purchase, or buying volume, aiming to maximize sales and profits.
The correct answer is letter B. Charging different prices to different groupsPrice discrimination happens when businesses charge different prices for the same product or service based on who the customer is. For example, senior citizens and students in the Philippines get discounts in movie theaters or fast-food chains.
