An example of price discrimination is A. a golf course charging higher prices for weekend tee minus times than for weekday tee minus times. B. an airline charging higher prices for business travelers than for leisure travelers. C. an apartment complex charging higher rent to African minus Americans than to whites. D. Both a and b. E. All of the above.

Question

12-12-2019
Business

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An example of price discrimination is A. a golf course charging higher prices for weekend tee minus times than for weekday tee minus times. B. an airline charging higher prices for business travelers than for leisure travelers. C. an apartment complex charging higher rent to African minus Americans than to whites. D. Both a and b. E. All of the above.

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Answer: Option C

Explanation: In simple words, price discrimination refers to the condition in which a supplier or producer of a good or service charges different prices from different customers, although that particular commodity remains same in respect of utility satisfactions.

In the given case, golf course and airlines are charging different prices for different level of services, hence we cannot term it as a price discrimination.

However, in option C the apartment is charging different prices from differ customer based upon their race for same level of service.