Asked by Matthew Eskender on May 14, 2024
Verified
In 1994, the Walt Disney Corporation ran a special promotion on tickets to Disneyland. Residents of southern California who lived near the amusement park were offered admission at the special price of $22. Other visitors to Disneyland were charged about $30. This practice is an example of:
A) collusion.
B) price discrimination.
C) two-part tariff.
D) bundling.
E) tying.
Price Discrimination
A pricing strategy where a firm charges different prices for the same product or service to different customers, based on their willingness to pay.
Disneyland
A globally recognized theme park brand, known for its entertainment complexes that blend imaginative attractions with characters from Disney movies.
Southern California
A geographical and cultural region in the southwestern part of the U.S. state of California.
- Gain an understanding of the principle of price discrimination and its various forms (first-degree, second-degree, third-degree).
- Recognize the conditions facilitating enterprises to partake in distinct prototypes of price discrimination.
Verified Answer
WC
Willie CollazoMay 20, 2024
Final Answer :
B
Explanation :
This is an example of price discrimination because Disneyland is charging two different prices to different groups of people based on their location.
Learning Objectives
- Gain an understanding of the principle of price discrimination and its various forms (first-degree, second-degree, third-degree).
- Recognize the conditions facilitating enterprises to partake in distinct prototypes of price discrimination.