Q.

Which of the following is an example of price discrimination?

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a

A restaurant offering discounts to senior citizens

b

A company setting different prices for different geographic regions

c

A shop offering buy one, get one free offer

d

A hotel charging higher rates during peak season

answer is C.

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Detailed Solution

Price discrimination refers to the practice of charging different prices for the same product or service to different customers. Setting different prices for different geographic regions is an example of price discrimination, as the company is charging different prices for the same product based on the location of the customer.

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Which of the following is an example of price discrimination?