Answer to Question #305152 in Microeconomics for Lucky

Question

In order for price discrimination to work,three conditions must be fulfilled. Which of the following is not one of those conditions?

Answer 1

The correct answer is;

C. The product must be a necessity.

Explanation.

Necessity goods are products and services which consumers buy regardless of the changes in their income levels hence these products are less sensitive to income changes. Some examples of these goods include; water and electricity.