asked 26.8k views
5 votes
The salesperson at your local car dealership most likely engages in what price discrimination

a. First-degree price discrimination
b. Second-degree price discrimination
c. Third-degree price discrimination
d. Peak-load pricing

asked
User Brahim
by
8.0k points

1 Answer

4 votes

Final answer:

c. Third-degree price discrimination. The salesperson at the local car dealership most likely engages in third-degree price discrimination.

Step-by-step explanation:

The most likely form of price discrimination engaged in by the salesperson at the local car dealership is third-degree price discrimination.

Third-degree price discrimination involves charging different prices to different groups of customers based on their willingness to pay. In this case, the salesperson at the car dealership may offer different prices or discounts to different customers depending on factors such as their income level, age, or location.

For example, the salesperson may offer lower prices to college students or senior citizens, as they may have a lower willingness to pay or be more price-sensitive. Alternatively, the salesperson may offer higher prices to customers from wealthier neighborhoods who may be willing to pay more for a car.

answered
User G Wimpassinger
by
7.4k points
Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.

Categories