Price Discrimination

Price Discrimination - Price Discrimination This occurs...

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Unformatted text preview: Price Discrimination This occurs when people are charged different prices for a product What are some examples? Price Discrimination Some common examples of price discrimination are: Student discounts Senior citizen discounts Matinee prices Airline tickets Ladies night Happy hour Price Discrimination Often price discrimination plays into the elasticity of demand for a product, offering a lower price to those who may have a more elastic demand and a higher price to those with inelastic demand Price Discrimination Review the following hypothetical data regarding movie prices on a college campus: Group Price Ed Students $3 2 Faculty $4 0.5 Is the college maximizing its revenue? If not, how could you change prices to increase revenue? ...
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