senior citizen) and charging different prices to each group. Most common examples:Airlines economy and business class fares, premium vs. non-premium liquor, discounts to students and senior citizens, C9Coupons.
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Third Degree Price DiscriminationThird-Degree Price DiscriminationMultimarket Price Discriminationis moreMultimarket Price Discrimination is more common as monopolist is more likely to know which group of consumers have more inelastic or elastic demand. Firms use observable or distinguishable characteristics (e.g., age, locations).Another way is let the consumers self select h t ki dfthElwhat kind of consumers they are. Examples: coupons, airline tickets (economic class vs. business class) etc10business class), etc...