Which of the following is not a condition for price discrimination?

CA Foundation · Business Economics · PYQS · May 2025
Which of the following is not a condition for price discrimination?
(A) A. The seller should have price setting power.
(B) B. The seller should be able to divide his market into two or more sub markets.
(C) C. The price elasticity of the product should be different in different sub markets.
(D) D. It should be possible for buyers of low-priced market to resell the product to the buyers of high-priced market.

Suggested Answer and Working Notes:

Correct Answer: Option (D)

D. It should be possible for buyers of low-priced market to resell the product to the buyers of high-priced market.

Topics: Price Determination in Different Markets

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