Microeconomics - Price Discrimination

Question 1

What is price discrimination

Answer 1

Price discrimination occurs in a monopoly, when the monopolist decides to charge
different groups of consumers different prices, for the same good or service.

Question 2

What is first degree price discrimination

Answer 2

First degree price discrimination is when each consumer is charged a
different price. For example, a lawyer might charge a high income family
more than a low income family.

Question 3

What is second degree price discrimination

Answer 3

Second degree price discrimination is when prices are different according to
the volume purchased. For example, with gas.

Question 4

What is third degree price discrimination

Answer 4

Third degree price discrimination is when different groups of consumers are
charged a different price for the same good or service.