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An insurance company offers discounts to safe drivers. A major airline sells tic

ID: 1096341 • Letter: A

Question

       An insurance company offers discounts to safe drivers.
       A major airline sells tickets to senior citizens at lower prices than to other passengers.
       A professional baseball team pays two players with identical batting averages different salaries.
       A utility company charges less for electricity used during "off-peak" hours, when it does not have to operate its less-efficient generating plants.

Question 11.11. (TCO 3) Which case below best represents a case of price discrimination? (Points : 3)

Explanation / Answer

A professional baseball team pays two players with identical batting averages different salaries is a case of price discrimination

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