price discrimination Flashcards
1
Q
2nd degree price discrimination
A
- the price changes between quantity i.e bunk is usually cheaper than individual
1
Q
1st degree price discrimination
A
- how much the consumer is willing to pay and how much producer charges
2
Q
3rd degree price discrimination
A
- price changes based on what segment the consumer falls in .
student vs adult prices
3
Q
advantages of price discrimination
A
- lead to more sales , more profit
- improve equality such as rich people will pay more i.e. chromebooks but schools get discounts
4
Q
disadvantage of price discrimination
A
- not allocatively efficient
- ethical
