Attempts: Average: I1 3. Examples of price discrimination Stasia and Mitch are d
ID: 1124545 • Letter: A
Question
Attempts: Average: I1 3. Examples of price discrimination Stasia and Mitch are debating the use of coupons by grocery stores. Stasia says, "The use of coupons in grocery stores represents a means of price discrimination. It's pure and simple. Coupons do reduce the price of groceries, but mostly to people who are less likely to buy at the full price." By contrast, Mitch contends, "Coupons do not constitute price discrimination. They simply represent a way of temporarily changing the prices of some grocery items. Coupons reduce the price for everyone, not just for those who are price sensitive." Economists generally agree with Stasia Mitch QNA 3.16 © 2004-2016 Aplia. All rights reserved. © 2013 Cengage Learning except as noted. All rights reserved. Grade It Now Save & Continue Continue without savingExplanation / Answer
Ans:
Economists agree with Stasia
Price discrimination is a pricing strategy which occurs when a seller charges a different price for the same products or services to various customers.some of the common price discrimination strategies are Coupons, Direct Segmentation.
In this case use of coupons will not decrease the price of grocery items for everyone but will attract the customers who are price sensitive.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.