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Key Concept: Price discrimination Suppose there are two markets for college football games, and each market contains the same number of potential consumers. The first market consists of rich alumni, and the second market is made up of low-income students. Based on this information, which group will be charged a higher price for football tickets? a. students. b. Alumni. c. Students and alumni will be charged equal prices. d. Cannot be determined.

BuyFind

Economics For Today

10th Edition
Tucker
Publisher: Cengage Learning
ISBN: 9781337613040
BuyFind

Economics For Today

10th Edition
Tucker
Publisher: Cengage Learning
ISBN: 9781337613040

Solutions

Chapter
Section
Chapter P3, Problem 7KC
Textbook Problem

Key Concept: Price discrimination

Suppose there are two markets for college football games, and each market contains the same number of potential consumers. The first market consists of rich alumni, and the second market is made up of low-income students. Based on this information, which group will be charged a higher price for football tickets?

  1. a. students.
  2. b. Alumni.
  3. c. Students and alumni will be charged equal prices.
  4. d. Cannot be determined.

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