Price discrimination exist when
Price discrimination exist when
- A) The same product of the same quality sold for different prices to the same buyer
- B) The same product of the same quality is sold for different prices to different buyers
- C) Different products are sold for the same price to the same buyers
- D) Different products are sold for the same price to different buyers
Correct Answer: B) The same product of the same quality is sold for different prices to different buyers
Explanation
This question is asking about price discrimination. Price discrimination is when a company charges different prices for the same product to different groups of customers. The question is asking which of the options is an example of price discrimination.
Option A suggests that the same product of the same quality is sold for different prices to the same buyer. This is not an example of price discrimination, because the buyer is still paying the same price for the same product.
Option B is the correct answer. It suggests that the same product of the same quality is sold for different prices to different buyers. This is an example of price discrimination because the company is charging different prices to different groups of customers.
Option C suggests that different products are sold for the same price to the same buyers. This is not an example of price discrimination because the buyers are still paying the same price for different products.
Option D suggests that different products are sold for the same price to different buyers. This is also not an example of price discrimination because the buyers are still paying the same price for the same product.
In summary, the correct answer to this question is option B, which states that price discrimination exists when the same product of the same quality is sold for different prices to different buyers.