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Sales at discountpricesbring lower margins than listpricesales, but they serve other objectives: To reward customer loyalty and encourage customer loyalty. As an incentive for larger quantity orders (through discounts for quantity orders). To maintain sales volume and market share when competitors reducepricesor introducenewproducts.

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Two months after Apple introduced the iPhone in 2007, the company reduced thepricefrom $600 to $400. How is this drop ofpricean example ofpricediscrimination? A. It's not an example ofpricediscrimination. B. Early adopters have a more elastic demand curve than late adopters. C. Early adopters have a higher demand than late adopters. D.

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