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Question
An example of price discrimination is when
a. movie theaters do not allow children into R-rated movies without a parent or guardian.
b. you can purchase a new PC for half the price of a new Mac, even though they are both computers.
c. Procter & Gamble charges $9 for a bottle of Tide laundry detergent, while the store brand costs the consumer significantly less, despite being somewhat similar products.
d. out-of-state students pay more for the same education as in-state students.
e. a grocery store charges $3.00 for a box of Froot Loops on Tuesday, but charges $2.80 for a box of Froot Loops on Wednesday.
Answer
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Related questions
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Suppose Solomon lives in a community with no price controls. What do you expect will happen if his town borders a community where there is a binding price ceiling on most products?
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