Suppose a Water Utility Company Charges a Residential Customer $1

Multiple Choice

Suppose a water utility company charges a residential customer $1.50 per 1,000 gallons for the first 30,000 gallons of water used and $1.00 per 1,000 gallons for any amounts used in excess of 30,000 gallons of water. The water utility is practicing _____ price discrimination.

A) second-degree
B) first-degree
C) third-degree
D) perfect