If you can buy a single paper towel roll for $1.99 or 24 rolls of paper towels for $12.99, what is this an example of?

Respuesta :

Answer: c) Second Degree Price Discrimination

Explanation:

The company selling the paper towels is reducing the price per quantity as more quantities are added.

This is an example of Second Degree Price Discrimination . Here the seller sells different quantities at different prices with higher quantities usually getting lower prices as a result of trade discounts the goal of which is to encourage more sales as opposed to less.

For instance, you could pay $50 a month for gym but be charged $7 if you just want to use it for a day.