Price Discrimination For Children And Senior Citizens Essay

Amazon can use 3rd degree price discrimination to divide customers into different groups and charge a different price to customers in different customers in different groups, but the same price to all consumers within the group. The firm will charge groups of customers prices relative to their demand elasticities. We can illustrate this on a graph:

First, Age discrimination is a very common reason why some people are not employed. However, there are laws in place that prohibits this kind of discrimination. Miller gave an explanation on the about age discrimination act (ADEA) of 1967, it prohibits employment discrimination on the basis of age against individuals forty years of age or older (Miller,2013).

For example, If you are selling a product that is a normal good with a high rate of competition in the market, raising the price could have negative effects on overall profits because users will simply find another substitute somewhere. Charles stated that market separation may come into play when firms realize there are differing elasticity curves for different consumers of the same product. Firms can maximize profits by evaluating consumer segments within a single market. If the firm notices different demand elasticity for different segments it may opt to engage in price discrimination to maximize profits. Charles gave Microsoft Office as an example; the same software is offered to students, casual users and business users at different price

The Equal Employment Opportunity Commission (EEOC) protects against age discrimination under Title VII. Specifically, the Age Discrimination in Employment Act (ADEA), which was passed in 1967 by congress, covers discrimination against employees who are 40 or more years old. This topic should be a big concern for employers, since the number of elderly workers is increasing as the baby boomer population matures. It is estimated that as many as twenty-percent of the claims filed with the EEOC are for age discrimination. Also, age discrimination settlements can be considerably higher than typical discrimination cases. Upon research, the average award amount between 1955 and 1988 was $219,000.

As against his a competitive firm cannot change different prices from different buyers since he faces a perfectly elastic demand at the going market price. If he increases a slights rise in price he will lose the sellers and makes loss. Thus a competitive firm cannot discriminate prices which a monopolist can do.

discrimination when passed over for jobs as a result of lack of experience, however, under the ADEA, they

This is where industry regulations come. The regulations discourages the monopolies and oligopolies from charging unfair prices for their products.

In all three degrees of price discrimination firms are able to make more profit and eliminate any excess capacity they may have. Firms are able to do this by charging higher prices to those consumers with a more price inelastic demand for their product. The firm is reducing the welfare of these consumers by changing them at the maximum price they are willing to

As a consumer, we all get frustrated when we think a listed price is “too high” whether it is a necessity, and we have to buy it, or we just really want it. Some of the largest complaints by consumers today are directed towards the cost of goods. Marketing research has shown us that the costs of some items are being intentionally raised based on aspects of the individual who is making the purchase. The manipulation of prices can be broken down into three main issues: price fixing, price gouging, and price discrimination. Are there any positive or beneficial reasons to do this? Yes and no, the following paragraphs provide information about each practice individually.

there are a number of different buyers and sellers in the marketplace. This means that we have competition in the market, which allows price to change in response to changes in supply and demand. Furthermore, for almost every product there are substitutes, so if one product becomes too expensive, a buyer can choose a cheaper substitute instead. In a market with many buyers and sellers, both the consumer and the supplier have equal ability to influence price.

Potential or existing customers can consider product prices high, low or fair, thereby regulating the active demand for the products of the company.

Age discrimination in employment is a complex issue which impacts many areas of Government policy and has many implications for individuals themselves. Age discrimination can occur across all spectrums of employment and can affect both young and old. Age discrimination can affect a person’s chances of getting a job, and potentially their chances of promotion or development within the workplace. Age can also be a factor when employers are deciding who should be selected during a workforce downsize or redundancy of work due to a mergers and acquisitions.

To critically and comprehensively address this case, it is convincingly important to assess the laws that forbids age discrimination and wrongful termination in workplace. Under the law, age discrimination can involve treating an employee or applicant less favorably because of her or his age. In accordance to the “Age Discrimination in Employment Act, it is unlawful to discriminate an employee on basis their age. The law is categorically clear that an employer not discriminate individuals who are 40 years old and above (Walsh, 2013). It should be noted that the Act provide for protection for the people/workers below 40 years. However, some states in the United States have laws in place that protect young employees against age discrimination. It is unlawful or illegal for employers or any other entity to consider hiring/favoring an older worker over the younger one. This withstands even if both employees are 40 and above. The law strongly prohibits age discrimination in any aspect of employment including firing, hiring, pay, promotions, job assignments, trainings, layoffs, benefits, and any other condition or term of employment.

This chapter sets out the rationale for price discrimination and discusses the two major forms of price discrimination. It then considers the welfare effects and antitrust implications of price discrimination.

a) In a perfect competitive market, the sole determinant of pricing is the market demand and the supply curves. A demand curve refers to the total amount that consumers will pay for their products. The supply curve is the total amount that the producers can actually make to supply to the company at the price they can afford or are willing to pay. Another factor in a perfect competitive market structure is the equilibrium price which is basically when the supply of the market meets the market demand of the consumers. Anther unique feature of a perfect competition market is that it is a price taker. In essence, this means that the company doesn’t have any influence on the price. Again, this can only be caused through a market that has a large number of firms with identical products. (Samuelson and Marks, 2010).