Week 2: Price Discrimination - Basic vs Deluxe

Question 1

Deluxe

Answer 1

customers declare a high willingness to pay

Question 2

Basic vs Deluxe example

Answer 2

Toyota Avalon (basic) - $40,000
Lexus LS 500 (deluxe) - $80,000
essentially the same car and made by the same manufacturer

Blueray DVDs (deluxe) compared to basic DVDs

Question 3

Basic vs Deluxe Price Discrimination

Answer 3

prices change according to whether or nothing a product is the basic or deluxe version