Asked by
Peyton Rogers
on Oct 12, 2024
Verified
Which statement is true?
A) Perfect price discrimination is very common.
B) Perfect price discrimination would eliminate consumer surplus.
C) Charging different prices to senior citizens,children,and adults under 65 is an example of perfect price discrimination.
D) None of the statements are true.
Perfect Price Discrimination
A pricing strategy where a seller charges each buyer the maximum price the buyer is willing to pay.
Consumer Surplus
The difference between what you pay for some good or service and what you would have been willing to pay.
Senior Citizens
Individuals who are typically above the retirement age, usually considered to be 65 years or older, often eligible for certain social benefits.
- Appreciate the role of consumer surplus and how it is affected by market structures and pricing strategies.
Verified Answer
AS
Learning Objectives
- Appreciate the role of consumer surplus and how it is affected by market structures and pricing strategies.