Insurance Companies Charge Men a Higher Price for Automobile Insurance

Multiple Choice

Insurance companies charge men a higher price for automobile insurance than women. The costs of insuring men are higher because they get into more accidents than do women. Which of the following statements is TRUE?

A) The insurance companies are practicing price discrimination.
B) The insurance companies are not practicing price discrimination.
C) The insurance companies are practicing inter-temporal price discrimination.
D) The insurance companies are using a bundling/tying strategy.