Question

Which of the following kinds of price discrimination occurs when each customer is charged one price for the first set of units purchased and a lower price for subsequent units purchased?
a. Perfect price discrimination
b. Third-degree price discrimination
c. This is not an example of price discrimination
d. Second-degree price discrimination

Answer 1

Answer:

D

Explanation:

Price discrimination is when the same product is sold at different prices to customers in different markets

types of price discrimination

1. first degree price discrimination : here sellers charge each consumer at their willingness to pay in order to eliminate consumer surplus.

2. second degree price discrimination : here firms offer different prices depending on the quantity purchased. e.g. giving discounts for bulk purchases.  

3, third degree price discrimination : firms charge different prices to different groups of customers. e.g. having a certain price for senior citizens, students