Which of the following cases are examples of price discrimination? 1. Airlines charge different fares for business people than tourist travelers. 2. Young males are charged higher premiums for car insurance than older males or women. 3. A local phone company charges different telephone rates to residential and business users. Select one: A. 1 only B. 2 only C. 3 only D. 1 and 3 only E. 1, 2, and 3 x

Which of the following cases are examples of price discrimination? 1. Airlines charge different fares for business people than tourist travelers. 2. Young males are charged higher premiums for car insurance than older males or women. 3. A local phone company charges different telephone rates to residential and business users. Select one: A. 1 only B. 2 only C. 3 only D. 1 and 3 only E. 1, 2, and 3 x

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter15: Monopoly

Section: Chapter Questions

Problem 4CQQ

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tion 14 of 23 Identity what type of price discrimination, if any, is described in each scenario. a. Art's Mac-n-Cheese sells for $0.99 at the Piggly Wiggly, but Bulky Warehouse sells a package of 12 boxes for $10. Perfect price discrimination ) Third-degree price discrimination Second-degree price discrimination No price discrimination b. Pandy Jewelry charges each customer the maximum he or she is willing to pay for a particular piece of jewelry. Perfect price discrimination Third-order price discrimination O Second-order price discrimination No price discrimination.
Assume that a large supermarket allows its customers to choose whether they will pay a lower price (if they cut and present a coupon) or a higher price (if they do not). Which of the following is true? This price discrimination and customers who cut coupons have the demand that is price elastic. Select one: a. IS; more O b. is not; more is not; less C. d. is not; equally e. is; less
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The following present different examples of price discrimination strategies. Match up the examples with the appropriate type of price discrimination. A university athletic department requires a donation prior to purchasing season tickets. A. Third-degree price discrimination A firm identifies different groups of customers in the market and offers different prices to each group. B. First-degree price discrimination A firm identifies and charges a unique price for each consumer in the market. C. Two-part tariff. D. Second-degree price discrimination A firm bundles together different products into packages with special prices.
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Which of the following statements about price discrimination are true? Choose one or more: A. One example of price discrimination is Subway charging more for its footlong subs than for its 6-inch subs. B. One example of price discrimination is a movie theater charging a lower price for a 2:00 PM movie than it charges for the same movie at 8:00 PM. C. One example of price discrimination is a restaurant that provides a "senior discount" to people over age 50. D. Price discrimination usually leads to higher total surplus than single-price monopolies, and it can even maximize total surplus. a
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24. When a movie theater price discriminates, this leads to more customers lower prices higher prices fewer customers
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