Which of these is NOT an example of price discrimination? retirees getting a discount at a local movie theater soup companies sending coupons to select buyers a novel printed in paperback that sells for more than the same book in an electronic format drug companies charging people living in wealthier countries higher prices for a drug than they charge people living in a poorer country for the same drug

Question

Nakita

Business

9 April, 00:28

Which of these is NOT an example of price discrimination? retirees getting a discount at a local movie theater soup companies sending coupons to select buyers a novel printed in paperback that sells for more than the same book in an electronic format drug companies charging people living in wealthier countries higher prices for a drug than they charge people living in a poorer country for the same drug

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Answers (1)

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Leyla Golden · Answer 1

A novel printed in paperback that sells for more than the same book in an electronic format

The example contains two different products, one is novel in paper form, and other in electronic form of the novel. Price discrimination occurs when we charge different prices for the same product from different customers. They are completely two different forms of the product which means the product is not identical in term of its form.

Explanation:

Above mentioned example is definitely does not fall under price discrimination.

Price Discrimination: is offering different prices to different customers for the same good. All of the other examples may falls under price discrimination because they contain same product but for different customers namely, discount at movie theater, soup companies sending coupons, and for the same drug they are charging different prices accordingly.