QUESTION 10 Which of the following is an example for multima

QUESTION 10 Which of the following is an example for multimarket (or group) price discrimination? O a BMW selling for more than a Vw O local residents receiving a discount at the local golf course ?the fact that a razor is cheap and blades are expensive O a hotel charging more for a room if the customers bring pets

Solution

Answer - local residents receiving a discount at the local golf course

Reason - price discrimination is a basic thing in a market and very common at the same time. It means the seller charges different prices from different customers based on his perspective of market. It could be as per class or society which a customer belongs to or income group or age or any other factor.

Multi-material price discrimination is when the seller divides the market into hypothetical customer groups. Like in present case we can say that the golf course is cheaper for the local residents and costly for others. It could be any other case as well like a smartphone seller can divide market into youngster group customers, middle aged customers and old aged group customer and fix different prices for each group accordingly

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