Question 1

1. Dave is an Australiantourist shopping at the Tokyo Fish Markets. He approaches a stallto purchase some salmon. Hiro, the owner, offers him 1 kilogram ofsalmon for 2,200 yen. Alternatively, if Dave is willing to purchase5 kilograms he can pay 1,800 yen per kilogram. Hiro is:

   1. price discriminating.
   2. using first degree pricediscrimination against Dave.
   3. using second degree pricediscrimination against Dave.

   Which of the abovestatements are true:

   		Only 1 is true.
   		Only 2 is true.
   		Both 1 and 3 aretrue.
   		Both 2 and 3 aretrue.
   		All three aretrue.