You are stocking up for the week at your favorite grocery store. On which of the following items would you expect to see the largest per-unit price discount?


The second principle of quantity differentiated product lines is that the per-unit price discount should be greater if people consume more of the item when they have a larger quantity available. The family-size bag of chips is most likely to have a large discount because people are more likely to consume more chips when they have a large bag.