Which of the following is an example of price discrimination? (A) Advertising free installation but charging a fee (B) Charging consumers for an extended warranty period (C) Offering pensioners cheaper prices than non-pensioners (D) Selling at the retail price imposed by the manufacturer - HSC - SSCE Business Studies - Question 2 - 2008 - Paper 1

Price discrimination occurs when a seller charges different prices for the same product or service to different consumers, based not on differences in cost but rather on willingness to pay. In this case, offering pensioners cheaper prices than non-pensioners is a clear example of price discrimination, as it's targeting specific groups based on their characteristics (age) and their potential ability to pay, thereby differentiating between consumer segments.