Asked by Nicholas Boren on May 14, 2024
Verified
The strategy that is NOT an example of price discrimination is:
A) discounts for senior citizens at the movies.
B) discounts for families with young children at motels.
C) generally lower prices at Walmart than at Target.
D) cheaper air fares if the traveler stays over a Saturday.
Price Discrimination
The practice of charging different prices for the same product or service to different consumers, based on what each is willing to pay.
Senior Citizens
Individuals of an advanced age, often defined as being 65 years old or older, who may have different social, economic, and healthcare needs.
Walmart
An American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores, known for its scale and efficiency in supply chain management.
- Identify the differences between legal and illegal scenarios of price discrimination.
- Identify instances of perfect and imperfect price discrimination across different settings.
Verified Answer
JM
Jessica MohannaMay 19, 2024
Final Answer :
C
Explanation :
Generally lower prices at Walmart than at Target is not an example of price discrimination because Walmart uses a low-cost strategy to offer lower prices to all customers, rather than targeting specific groups based on their willingness or ability to pay. The other options, such as discounts for senior citizens, families with young children, or travelers who stay over a Saturday, are examples of price discrimination because they offer different prices to different groups of customers based on their characteristics or behavior.
Learning Objectives
- Identify the differences between legal and illegal scenarios of price discrimination.
- Identify instances of perfect and imperfect price discrimination across different settings.