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Homework (Ch 15) Back to Assignment Attempts: Keep the Highest: 1 6. Examples of

ID: 2441472 • Letter: H

Question

Homework (Ch 15) Back to Assignment Attempts: Keep the Highest: 1 6. Examples of price discrimination Complete the following table by indicating whether or not each scenario is an example of price discrimination. Hint: To determine whether a scenario is an example of price discrimination, think about whether the market can be segmented into two groups that pay different prices for the same good. Price Discrimination Scenario Most restaurants will supply a free dessert if it is the customer's birthday. Assume that this is not specifically advertised by restaurants Yes No Every year, Lesspay ShoeSource promotes its giant BOGO sale-buy one pair of shoes and get one half off-through commercials and other means of advertising. Note that the price of one pair of shoes is the regular retail price, so a customer must buy two pairs of shoes to receive the discount.

Explanation / Answer

1) No price discrimination

2)No price discrimination

Because they are not charging price for Thier product they are just giving free dessert to birthday customer and in second case also they are giving sale on shoe pair which means charging same price of products and giving discount on purchase of 2 shoe pair.