Question

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

Answer 1

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.

Answer 2

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.