Which of the following would NOT be considered price discrimination?
charging business travelers more money than leisure travelers for plane tickets
charging houses in expensive neighborhoods more money for mowing the same size lawn than in a less expensive neighborhood
charging a lower price for dry cleaning men's shirts than women's shirts
charging more money for a large luxury car than a small economy car
Answer D
Yes, D.
To determine which of the options would NOT be considered price discrimination, we need to understand what price discrimination is. Price discrimination refers to the practice of charging different prices to different customers for the same product or service, based on various factors such as customer characteristics, preferences, or purchasing power.
Let's analyze each option:
A) Charging business travelers more money than leisure travelers for plane tickets: This would be considered price discrimination because different prices are being charged based on customer characteristics (business versus leisure travelers).
B) Charging houses in expensive neighborhoods more money for mowing the same size lawn than in a less expensive neighborhood: This could be considered price discrimination if the price difference is solely based on the neighborhood's expense. However, it could also be justified by factors like transportation costs, labor, or market dynamics, so we cannot definitively say it is price discrimination without more information.
C) Charging a lower price for dry cleaning men's shirts than women's shirts: This would be considered price discrimination because different prices are being charged based on customer characteristics (gender).
D) Charging more money for a large luxury car than a small economy car: This would NOT be considered price discrimination. Different prices are being charged for different products (large luxury car versus small economy car) rather than based on customer characteristics or preferences.
Therefore, the correct answer is D) charging more money for a large luxury car than a small economy car.