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a.) a department store has a 25 percent off the price sale?
b.) a publisher sells economics textbooks at a lower price in North Carolina than in New york?.
c.) the japanese sell cars at higher prices in the united states than in japan?.
d.) The telephone company charges higher long-distance rates during the day?.

2007-03-14 06:28:33 · 4 answers · asked by prettypls, 1 in Social Science Economics

4 answers

b, c, and d all represent price discrimination, which is charging two different prices to different sectors of the populace. Since each of these examples indicate that the producer is selling to different consumers at different prices, this is price discrimination. a is not price discrimination since it is my belief that all customers of the department store receive the 25 percent off, and not just certain ones.

2007-03-14 06:47:55 · answer #1 · answered by theeconomicsguy 5 · 0 0

B constitutes price discrimination. The publisher makes the school system in New York pay more for the same textbook he sells in North Carolina. This discriminates against the NY students. We must assume that the publisher chooses to charge the New Yorkers more because he feels they can pay more -- not because of increased shipping charges or some other factor beyond his control. The Japanese charge higher prices in the US due to tariffs imposed by the US government. This is beyond the control of the Japanese and in order to keep their profit margins the same as in Japan they must charge more.

2007-03-14 06:48:54 · answer #2 · answered by nano49 2 · 0 0

the unique case in contact a mom and dad food market and a higher chain. i have self assurance the year of the Congressional Act replaced into 1938. i'm particular the regulation exceeded with regards to it replaced into The Robinson Patman Act. Google that and appropriate circumstances and also you should get truly some.

2016-12-02 00:06:49 · answer #3 · answered by thetford 3 · 0 0

(b) is the only clear-cut discimination

a - same discount for all consumers

c - there are transportation costs and export tariffs

d - load is higher during the day, so it costs more to provide the service

2007-03-14 07:52:24 · answer #4 · answered by Anonymous · 0 0

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