You and your friend who just graduated visit a local ice cream parlor. By showing your student id you are able to buy an ice cream cone for $1 cheaper than your friend. What type of price discrimination is this an example of? A. First-degree price discrimination B. Second-degree price discrimination C. Third-degree price discrimination D. Fourth-degree price discrimination

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Price Discrimination

Price discrimination or differential pricing is based on the principle that the seller will charge the buyer a price based on the buyer’s ability and willingness to pay for the product rather than applying uniform pricing for all.