Question

Bob is a self-trained painter who works near Maggie Valley, North Carolina, in the Smoky Mountains. When customers come to his studio he studies their interest and tries to gauge how much they would pay for a piece, attempting to get as much money as possible from each customer. This is an example of which type of price discrimination

Answer 1

Answer: first degree price discrimination

Explanation:

From the question, we are informed that Bob is a self-trained painter who works near Maggie Valley, North Carolina, in the Smoky Mountains and that when customers come to his studio he studies their interest and tries to gauge how much they would pay for a piece, attempting to get as much money as possible from each customer.

This is na example of first degree price discrimination as the price being charged to the customers is actually based on what they can afford to pay.