Question

A tennis coach charges $15 per hour for tennis lesson for children and $30 per hour for tennis lessons for adults. This can be viewed as a practice of ______.
A. Perfect first-degree price discrimination
B. Imperfect first-degree price discrimination
C. Second-degree price discrimination
D. Third-degree price discrimination
E. None of the above

Answer 1

Answer:

Third-degree price discrimination

Explanation:

Price discrimination is defined as the phenomenon where a single supplier of goods and services charges different prices in different markets on the same product.

Third-degree price discrimination occurs when different prices are charged to different customers for the same product. Customers are grouped by age, sex, location, and time of use.

In the given instance discrimination was based on age. One price was given for children and another for adults.

This is a very common type of price discrimination.

Answer 2

Answer:

Option D is correct.

Third-degree price discrimination

Explanation:

tennis coach charges $15 per hour for tennis lesson for children and $30 per hour for tennis lessons for adults. This can be viewed as a practice of Third-degree price discrimination.

Third Degree Price Discrimination involves charging a different price to different groups of consumers for the same good. These groups of consumers can be identified by particular characteristics such as age, sex, location, time of use.