CFA Practice Question

There are 539 practice questions for this study session.

CFA Practice Question

Which of the following is an example of price discrimination?
A. Meals in New York City cost more than meals in a small town.
B. The grocery store has a "buy one, get one free" sale on eggs.
C. The local department store has special sale prices that are only good from 8 a.m. to 11 a.m.
Explanation: Only the early morning sale is a price-discrimination scheme. Meals cost more in cities because firm costs are higher. The egg sale is available to everyone.

User Contributed Comments 2

User Comment
renataa Price discrimination between whom....??? Anyone can turn up to the store btw 8 and 11... so this price is available for every customer... Help plz?
bretonpa the key is the local department. Only one shop is mentioned and it targets a segmented type of people (available between 8am and 11am).
I guess if proposition A was: xyz pizza chaine has two stores on in NY and the other in a small town, it would have been price discrimination as well.
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