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The correct answer to the question is:
- Price discrimination; legal
Explanation:
1. Price discrimination is when a company charges different prices to different customers for the same product or service. In this case, hotel chains offering discounts to AAA members are practicing price discrimination because they are giving a lower rate to a specific group of customers.
2. Offering discounts to AAA members is legal in the United States. This practice is common among businesses as a way to attract specific customer segments and promote customer loyalty without violating any laws.
Therefore, the situation described in the question, where hotel chains provide discounts to AAA members, falls under the category of price discrimination and is legal in the United States.
