Question

Antonio and Dina are debating the use of student discounts by local theaters near school. Antonio argues, "When theaters offer discounts to students with valid identification, it is price discrimination, because they are attempting to separate the market into two groups—each with different demands for that particular good." Dina responds with, "This is not a form of price discrimination, because there is no age restriction for students."
Economists generally agree with :

A) Dina

B) Antonio

Answer 1

Answer:

The correct answer is letter "A": Dina.

Explanation:

The fact that local theaters near school offer a discount to students with valid identification is not a form of discrimination. As stated by Dina, there is no age restriction, for instance, and it is presumed, there is no other such religious preference, sexual orientation, race, and so forth. Economists are more likely to agree with Dina since what the local theaters are simply trying to do is to get the more clientele possible out of diverse sources. In this case, the source is the student status.