Answer: The correct answer is b). Second-degree price discrimination.
Explanation:
Price discrimination can be said to be practiced when different prices are charged for the same good or service. Three types of price discrimination exist– first-degree, second-degree, and third-degree price discrimination.
Second-degree price discrimination occurs when a company charges a different price for different quantities consumed. Such can be seen in situations of bulk purchases.
Answer:
C) third-degree price discrimination
Explanation:
-First-degree price discrimination is when a business has a different price for each unit consumed.
-Second-degree price discrimination is when a company has a different price for different quantities.
-Third-degree price discrimination is when a business has different prices for different segments of the market.
-Fourth-degree price discrimination is when a company has the same prices but has different costs.
According to this, the tennis pro is practicing third-degree price discrimination because he has different prices for children and adults which are different market segments.
