Racial discrimination and other forms of discrimination based on ...

[Pea0909berry]

Racial discrimination and other forms of discrimination based on irrelevant factors are illegal. Can price discrimination be illegal as well?
 
  What will be an ideal response?

Question 2

An increase in the real interest rate will
 
  A) most likely lower the reward to savings.
  B) most likely lower the cost of borrowing.
  C) most likely lower consumers' purchases of durable goods.
  D) cause consumers to spend more and save less.

[Amiracle]

Answer to Question 1

In 1936, Congress passed the Robinson-Patman Act which outlawed price discrimination if it resulted in less competition. However, the language used in the act made it seem that all price discrimination that was not based on differences in cost was illegal. Courts render judgments regarding violations of acts of Congress based on how they interpret the language used in these acts. In recent years, the courts have interpreted the Robinson-Patman Act narrowly; that is, price discrimination as practiced by the airlines, colleges and universities, and other firms is not considered to be illegal.

Answer to Question 2

C