Question

At many municipal golf courses, local residents pay a lower fee to play than other golfers do. One necessary condition for the golf course to be able to successfully price discriminate according to residency is that

a.they can check the identification cards of golfers.
b.local resident golfers and other golfers have the same price elasticity of demand to play at the municipal course.
c.there are many golf courses nearby from which golfers can choose.
d.they require all golfers to rent a cart

Answer 1

The correct option is - A (they can check the identification cards of golfers).

Explanation:

Price discrimination is generally a belief that consumers may be asked to pay either more or less based upon the various points on demographic features. They may also price according to the value of goods or services provided to them.

Thus, in the given case, in order to discriminate the price for the golf players, it is essential to check their cards identifying them as the residents of such place