For each of the following examples, explain how and why a
a) Air transport for business people and tourists
b) Serving food on weekdays to business people and retired people. (Hint: Which group has more flexibility during a weekday to adjust to a price change and, a higher
c) A theater that shows the same movie to a large families and to individuals and couples. (Hint: For which set of people will the overall expense of a movie be a larger part of their budget, so that demand is relatively more elastic?)
Concept introduction:
Price discrimination implies charging different price from different customers for the same product or service.
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