Which of the following scenarios is anexample of price discrimination? I. A part

Question

Which of the following scenarios is anexample of price discrimination?

I. A party planner who lives in California charges $100 per hourfor parties in California. He receives a telephone call to plan aparty in a remote town in Colorado. He must fly to Colorado andrent a car to drive to the town to do the planning. He charges $200per hour.

II. The average cost to produce a music CD and ship it to anywherein the world is about $1 per CD. However, a music CD manufacturercharges high prices for CDs in urban areas and low prices for CDsin rural areas.

III. Brewed Force is a local beer monopoly in a small town. Itsells two types of beer: Bria and Perk's. Bria is $5 per can andPerk's is $10 per can.
A.   I only B.   I and III only C.   I, II, and III D.   III only E.   II and III only F.   II only

Explanation / Answer

I think its E

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