Asked by Margarett Stuart on Jul 16, 2024
Verified
Sadia wants to practice price discrimination in her bakery.Which strategy should Sadia NOT use?
A) discounts for people who buy a large volume of bread
B) higher prices for people who buy bread on the day it is baked and lower prices for people who place advance orders
C) an annual fee for customers who want to shop at a discount in her store
D) the same price for all consumers for freshly baked goods
Price Discrimination
The strategy of selling the same product to different customers at different prices based on factors such as willingness to pay, not production costs.
Bakery
A place where bread, pastries, cakes, and other baked goods are made or sold.
Advance Orders
Pre-orders made by customers for products or services that are not yet available, ensuring early access or delivery.
- Differentiate between scenarios of legal and illegal price discrimination.
Verified Answer
Learning Objectives
- Differentiate between scenarios of legal and illegal price discrimination.
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