Week 2: Price Discrimination - Class Based

Question 1

Class-based Price Discrimination

Answer 1

price discrimination that capitalizes off that fact that certain groups have a higher or lower willingness to pay

Question 2

Class-based priced discrimination example

Answer 2

students and senior pricing may be lower for a movie theater because they have a lower willingness to pay due to fixed incomes
*in order to get their business at all, you must offer a discount for these groups