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Question
The State Electricity Board sells electricity at cheaper rates for domestic use than for commercial use. Given statement shows an act of ______.
Options
Product differentiation
Price discrimination
Consumer exploitation
Price determination
Solution
The State Electricity Board sells electricity at cheaper rates for domestic use than for commercial use. Given statement shows an act of Price discrimination.
Explanation:
In order to ensure that electricity is affordable for homes, the State Electricity Board implemented a strategy that involves charging varied tariffs. This strategy also supports small businesses and generates cash from commercial consumers to support infrastructure development and electricity delivery.
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