Asked by Angela Trevino on May 16, 2024

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The economic incentive for price discrimination is based upon

A) prejudices of business managers.
B) differences among sellers' costs.
C) a desire to evade antitrust legislation.
D) differences among buyers' elasticities of demand.

Price Discrimination

A pricing approach in which the same provider sells the same or nearly the same products or services for different prices in distinct markets or to various customers.

Elasticities of Demand

A measure of how much the quantity demanded of a good responds to a change in price, indicating the sensitivity of consumers to price changes.

Economic Incentive

A financial or material benefit that motivates individuals or businesses to act in certain ways or pursue particular courses of action.

  • Recognize the distinctions in demand elasticity and their role in influencing strategies for pricing discrimination.
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JN
Jamie NightlingerMay 20, 2024
Final Answer :
D
Explanation :
Price discrimination is primarily motivated by differences among buyers' elasticities of demand, allowing sellers to charge different prices to different customers based on their willingness to pay.