Question: A coffee shop charges $ 4 for a regular size white chocolate coffee but only $ 2 . 5 0 for a regular coffee, despite

A coffee shop charges $4 for a regular size white chocolate coffee but only $2.50 for a regular coffee, despite the fact that variable cost between the two is almost negligible (under $.1 to add the white chocolate). In effect the shop has price discriminated between two classes of customers, frugal and luxury. This practice is known as

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