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UI Post-UTME Economics 2023 (Model questions) Question 7

Question 7

Market Structures

Customers who purchase a book from Dave's Bookstore are charged 20% more than customers who purchase the same book from Dave's Bookstore website. This is an example of ________

  1. A.perfect Price discriminants
  2. B.price discrimination
  3. C.deadweight loss
  4. D.socially inefficient output
Show the answer and explanation

Answer: B (price discrimination)

Explanation

Selling the same product to different buyers at different prices is price discrimination.