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Sam, a 3rd grader, really likes to look for interesting bugs with other people d

ID: 1218820 • Letter: S

Question

Sam, a 3rd grader, really likes to look for interesting bugs with other people during recess. Three of Sam's friends offer to look for bugs with Sam in exchange for his playing a game that he or she likes. Bill wants to play King-of-the-Mountain, Suzie wants to play Hopscotch, and Johnny wants to play Slaps. Sam normally likes playing with all three of his friends equally, and offers to trade one day of King-of-the-Mountain with Bill for one day of looking for bugs. Sam doesn't like to play Hopscotch, so he offers to trade Suzie one day of Hopscotch for two days of looking for bugs. Sam knows that Johnny really likes playing Slaps, and so while Sam likes playing Slaps and King-of-the-Mountain equally, he offers to trade Johnny one day of Slaps for two days of looking for bugs. Is sam's offer to suzzie price discrimination? Is sam's offer to Johnny Price discrimination?

Explanation / Answer

No, Sam's offer to suzie is not showin price discrimination because Sam does not have any interest to play Hoscotch.

But Yes, Sam's offer to Johnny shows price discrimination because Sam likes playing Slaps and King-of-the-Mountain equally but he said Bill for one day of looking for bugs while Johnny for two days of looking for bugs.

Price discrimination occurs when a same commodity is sold for different prices to different customers.

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