Micro Economics For Today
10th Edition
ISBN: 9781337613064
Author: Tucker, Irvin B.
Publisher: Cengage,
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Chapter 9, Problem 17SQ
To determine
The necessary condition for
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Students have asked these similar questions
So, 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.
Price Discrimination à what does it mean? Who does this practice? How and why? Give suitable examples in this regard
Q. When you go to your dentist, she charges you the full price for your clean and shine but the dentist charges your grandmother (a senior citizen) a 20 percent discounted price for the same service. Explain why the dentist is able to make the price discrimination work.
Chapter 9 Solutions
Micro Economics For Today
Ch. 9.1 - Prob. 1GECh. 9.1 - Prob. 2GECh. 9.2 - Prob. 1YTECh. 9.4 - Prob. 1YTECh. 9 - Prob. 1SQPCh. 9 - Prob. 2SQPCh. 9 - Prob. 3SQPCh. 9 - Prob. 4SQPCh. 9 - Prob. 5SQPCh. 9 - Prob. 6SQP
Ch. 9 - Prob. 7SQPCh. 9 - Prob. 8SQPCh. 9 - Prob. 9SQPCh. 9 - Prob. 10SQPCh. 9 - Prob. 11SQPCh. 9 - Prob. 12SQPCh. 9 - Prob. 13SQPCh. 9 - Prob. 1SQCh. 9 - Prob. 2SQCh. 9 - Prob. 3SQCh. 9 - Prob. 4SQCh. 9 - Prob. 5SQCh. 9 - Prob. 6SQCh. 9 - Prob. 7SQCh. 9 - Prob. 8SQCh. 9 - Prob. 9SQCh. 9 - Prob. 10SQCh. 9 - Prob. 11SQCh. 9 - Prob. 12SQCh. 9 - Prob. 13SQCh. 9 - Prob. 14SQCh. 9 - Prob. 15SQCh. 9 - Prob. 16SQCh. 9 - Prob. 17SQCh. 9 - Prob. 18SQCh. 9 - Prob. 19SQCh. 9 - Prob. 20SQ
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- 33. Rodrigo gets a $1.00 discount by buying Cheerios on the end of the aisle that have a store coupon. Olivia buys the same sized Cheerios at the regular price in the cereal section. Is this price discrimination? True Falsearrow_forwardIs this a form of price discrimination? Why? Include in your analysis differing levels of elasticity, if relevant, and any other feature. Why would an airline use this practice? Provide a dollar and cents example. The airlines caught up with this scheme and ended it. What principal of price discrimination did the students violate so as to end it?arrow_forwardWhich 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_forward
- 10) Many restaurants offer "early-bird specials" to dinner customers. These specials consist of a significant price reduction on selected menu items purchased before some pre-determined time, e.g., 6 p.m. Is such a practice a form of price discrimination? If so, what type?arrow_forward30. A restaurant offers fajitas for $14 at lunch and $18 at dinner. This is which type of price discrimination? 1st degree 4th degree 2nd degree 3rd degreearrow_forwardQ2. a) define the income elasticity of demand? b) what is the normal and an inferior good? c) define the cross-price elasticity of demand? d) Compare and contrast monopoly and perfect competition market structures in the Long-run.arrow_forward
- Logically Explain: (a) Which degree of price discrimination may cause favor for the consumer rather than producer? Explain it with the help of most appropriate example.arrow_forwardQuestion 2 (a) what is price discrimination.Give examples (b) Determine the conditions for price discrimination to be effective.arrow_forward1. Company A is the only one that can sell a certain number of products in New York City. Firm A faces competition elsewhere in the United States. If Company A is able to price discrimination, a. Will prices in New York City be different from elsewhere? if yes or no, explain your reasons clearly. b. In this case, do you think there will be a high correlation of price movements between New York City and elsewhere? c. What do you think about the existing market structure in New York? please help with your explanation by drawing the required relevance curve.arrow_forward
- Which condition is necessary for a firm to successfully implement price discrimination? A. The ability to segment the market into different groups based on elasticity of demandB. A perfectly competitive market structureC. Identical products across all segments of the marketD. Perfect information among consumers about pricesarrow_forwarda. Complete the table below picture attached. b. What conditions should exist for price discriminationarrow_forwardWhich of the following statements about price discrimination is FALSE? Question 17Answer a. Price discrimination is inconsistent with perfect competition b. 1st degree price discrimination always results in an efficient outcome c. None of the statements are false d. Price discrimination typically improves efficiency e. 3rd degree price discrimination always results in an efficient outcomearrow_forward
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