6. Examples of price discrimination Complete the following table by indicating whether or not each scenario is an example of price discrimination. Hint: To determine whether a scenario is an example of price discrimination, think about whether the market can be segmented into two groups that pay different prices for the same good. Price Discrimination Scenario Yes No The price of a gallon of gas at a SwellGas station in the center of a densely populated suburban area is $3.53 per gallon, but the price of a gallon of gas at the SwellGas station at a rest area right off the highway is $4.27 per gallon. A local boutique is having a sale on sweaters, but customers are not aware of the sale until they are already in the store. In other words, there is no advertising of the sale other than signs in the back of the store that cannot be seen from the outside. All sweaters are marked as 45% off.
6. Examples of price discrimination Complete the following table by indicating whether or not each scenario is an example of price discrimination. Hint: To determine whether a scenario is an example of price discrimination, think about whether the market can be segmented into two groups that pay different prices for the same good. Price Discrimination Scenario Yes No The price of a gallon of gas at a SwellGas station in the center of a densely populated suburban area is $3.53 per gallon, but the price of a gallon of gas at the SwellGas station at a rest area right off the highway is $4.27 per gallon. A local boutique is having a sale on sweaters, but customers are not aware of the sale until they are already in the store. In other words, there is no advertising of the sale other than signs in the back of the store that cannot be seen from the outside. All sweaters are marked as 45% off.
Chapter13: Monopoly And Antitrust
Section: Chapter Questions
Problem 13P
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