A chocolatier produces truffles and sells each 1 pound box of truffles for $20. However, the chocolatier knows that some consume

Question

2 months ago

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A chocolatier produces truffles and sells each 1 pound box of truffles for $20. However, the chocolatier knows that some consume

rs would be willing to pay more than the cost of the chocolate, but less than $20 per pound, and wishes to sell truffles to these consumers as well. Which of the following price discrimination methods relies on the chocolatier knowing which types of consumers are likely to have a lower willingness to pay?
a) Offering one free box of truffles to anyone who purchases two boxes
b) Selling misshaped truffles in bulk at a price of $12 per pound
c) Offering a discount to students and seniors
d) Offering a 20% off sale on a single type of truffle each week

Business

1 answer:

marusya05 [3.7K] · Answer 1 · 2026-03-01T05:47:18+03:00

Answer:

c) Providing a discount for students and seniors.

Explanation:

Price discrimination occurs when a seller charges different prices for the same product to varying customers. It is typically employed to capitalize on consumer surplus.

When a chocolatier identifies a buyer group willing to pay less, they can focus on this demographic and provide them with a lower payment option.

In this scenario, offering discounts to students and seniors indicates that the chocolatier has recognized these groups as customers likely to purchase chocolates for less than $20.