Price discrimination is the practice of selling the same good at different prices to different buyers.

• A. Sometimes
• B. It requires identical pricing for all buyers.
• C. True
• D. False

Answer: (C)

Price discrimination involves charging different prices to different buyers for the same good, based on differences in willingness to pay or other buyer characteristics. The statement is true because that exact idea—varying the price across buyers for the same product—is what price discrimination means. In practice you see this all the time: airline tickets with different fares, student or senior discounts, or bulk buyers paying less per unit. There are several forms (charging each person their maximum willingness to pay, charging by quantity or version, or charging different groups different rates), but the common thread is that price varies across buyers rather than being identical for everyone. If everyone paid the same price all the time, that would not be price discrimination, but the practice described does fit the concept.