EBK PRINCIPLES OF MICROECONOMICS (SECON
2nd Edition
ISBN: 9780393616149
Author: Mateer
Publisher: W.W.NORTON+CO. (CC)
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Chapter 11, Problem 2SP
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what are pricing tactics and examples? What are some forms of price discriminations?
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How does price discrimination play a role in the economy?How does the idea of price discrimination apply to an industry?
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EBK PRINCIPLES OF MICROECONOMICS (SECON
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- Which of the below is NOT an example of price discrimination? a. A store that offers a senior’s discount on Thursdays. b. A fast-food restaurant sending coupons to the public. c. A grocery store that offers better pricing if the customer buys in bulk. d. Competing grocery stores have different prices for milk.arrow_forwardSo, why do firms practice third-degree price discrimination? a) firms get pressure to offer lower prices to some consumer types- like children or senior citizens. b) Firms can earn greater profits practicing third-degree price discrimination compared to charging a single price per ticket. I need help figuring out if the answer is a or b.arrow_forwardPlease read the following article from The Atlantic on the proliferation of price discrimination for online shopping https://goo.gl/EGFynW A.) The article notes that we are moving toward a situation in which perfect price discrimination is no longer “only a classroom thought experiment.” Suppose perfect price discrimination were to become a reality. What would this imply as far as consumer surplus, producer surplus, and market surplus in the market for online retail? B.) The article references a study showing that by using big data online firms are able to boost profits. When firms engage in price discrimination and experience an increase in profits, does this imply that consumers are made worse off as a result? Explain. C.) Do you agree with the author’s belief that the proliferation of price discrimination “makes suckers of us all”? Explain. D.) Do you consider the increased price discrimination in recent years as a net positive or a net negative to society? Explainarrow_forward
- Which of the following is not an example of price discrimination? a. Senior citizen discount at the movies b. Grocery coupons c. Shipping a package further costs more d. Charging a higher price for ice-cream during the summer and a lower price in the winterarrow_forwardQ) Price Discrimination: (short Answer) Why do airlines charge different fares for the same flight?arrow_forwardWhere will you see more price discrimination: In monopoly-type markets with just a few firms or in competitive markets with many firms? Why?arrow_forward
- Tara loves to go through the Saturday paper and cut out supermarket coupons. How do you think Tara's coupon-clipping habits apply to the concept of price discrimination?arrow_forwardWhat is price discrimination and how it helps the firm and the consumersarrow_forwardWhich of the following would not be considered price discrimination? 1 Long distance telephone rates are cheaper late at night. 2 Airline fares are cheaper if you reserved several weeks in advance. 3 The price of a brand name prescription drug is higher than the price of a generic brand. 4 Senior citizens pay less for a movie.arrow_forward
- Some universities charge students different tuition rates depending on their major, e.g., students in business or engineering typically pay more than in other majors. What would you need to know to determine whether or not this is price discrimination? Explain.arrow_forwardWhat is price discrimination?arrow_forwardIt is often said that a competitive market is more beneficial for the consumers as compared to the monopoly market. Why ? Explain.arrow_forward
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