Price Discrimination

Question 1

Define price discrimination

Answer 1

Charging different consumers different prices for the dame product

Question 2

What is 1st degree

Answer 2

Charging different prices for each individual unit produced ie people haggling

Question 3

What is 2nd degree price discrimination

Answer 3

Prices varying when blocks of tickets sold or prices varying by the time of purchase

Question 4

What is 3rd degree

Answer 4

Charging different prices to groups of consumers segmented by ped , income and wage and location

Question 5

What are the aims of price discrimination

Answer 5

.Extra revenue by selling extra units
.Use spare capacity by reducing prices more will be sold