Which of the following situations would be examples of price discrimination?
A. United Airlines charges customers who book 14 days ahead a lower price than those who don't.
B. Chevron gas stations charges customers 20 cents more per gallon if they choose the premium grade over the regular unleaded.
C. The local carwash charges drivers of minivans and large SUVs a $2.00 "large vehicle" surcharge.
D. GEICO, an insurance company, charges higher rates to those who received more than one speeding ticket in the last 6 months.
Answer: A
You might also like to view...
A graph has a point that is either a maximum or a minimum. To the left of the point, the slope of relationship is positive. To the right of the point, the slope is negative
Is the point a maximum point or a minimum point? Be sure to draw a figure that supports your answer.
The figure above shows a labor market. If this labor market is perfectly competitive, employment is
A) 0 hours per week. B) 50 hours per week. C) 100 hours per week. D) 150 hours per week.
If the central bank did not follow the Taylor principle, an increase in inflation would lead to a decrease in ________
A) the nominal interest B) the real interest rate C) aggregate output D) all of the above E) none of the above
Disposable income is not:
A. total income minus taxes. B. what consumers base their buying decisions on. C. the amount consumers have to spend on goods and services. D. income before tax.