Define the economic term ‘price discrimination’ and give two examples of its use.

Expert Solution

Answer) Price discrimination

Some examples are:-

1) Customers purchasing flight tickets several months in advance normally pay less than consumers purchasing at the last minute. When demand for a particular flight is high, airlines increase ticket rates in response.

2) A cinema hall may categorize moviegoers into seniors, adults, and children, each spending a different price when watching the same film.

Rahul Sunny answered 1 year ago

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