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Mkey [24]
3 years ago
14

Indirect price discrimination differs from direct price discrimination because a. ​There is no difference between the two b. ​In

indirect price discrimination high value consumers can sometimes still get the low price c. ​Direct price discrimination encourages rivals to enter but indirect discrimination does not d. ​In direct price discrimination firms do not have to worry about cannibalizing
Business
2 answers:
forsale [732]3 years ago
5 0

Answer: (b) ​In indirect price discrimination high-value consumers can sometimes still get the low price

Explanation:

Direct price discrimination is based upon the identity of the buyer, while indirect price discrimination involves several offers and achieves price discrimination through customer choices. Two common examples of indirect price discrimination are coupons and quantity discounts.

german3 years ago
4 0

Answer:

The correct answer is letter "B": ​In indirect price discrimination high value consumers can sometimes still get the low price.

Explanation:

Price discrimination refers to a strategy used by companies to provide the goods or services at different prices to different sectors of the market because of people's features such as age, impairments or location. rice discrimination always carries one of those excuses otherwise the activity would be illegal.

Direct price discrimination implies provided low-value consumers with lower prices. Indirect price discrimination could provide both high and low consumers at a lower price.

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Suppose that the U.S. government decides to charge wine consumers a tax. Before the tax, 30 billion bottles of wine were sold ev
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The amount of the tax on a bottle of wine is $5 per bottle. Of this amount, the burden that falls on consumers is $3 per bottle, and the burden that falls on producers is $2 per bottle. True or False: The effect of the tax on the quantity sold would have been larger if the tax had been levied on producers.

Explanation:

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The burden on producers is $2 ($6 - $4) which represents the difference between before-tax selling price and the after-tax selling price for the producers.  This means that the burden passed to producers is $2 out of the total tax burden of $5.

If the tax burden were passed to the producers alone, the selling price would have been more than $11 ($6 + 5).  This would have reduced demand for wine as consumers would have been forced to bear the total burden.  This would have made the tax unequitable.  This would have been the case unless demand is inelastic.  That means that the total demanded is not sensitive to price increases.

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