§ 17042 Functional Classification Price Differentials

• •Businesses can choose who they want to sell to.
• •Businesses can group customers into types like wholesalers or retailers.
• •Businesses can charge different prices to different types of customers.

A toy company sells toys to big stores and small shops.

The toy company can sell toys at a lower price to big stores because they buy a lot, and charge small shops a higher price because they buy fewer toys.