Asked by Lizeth DeLaTorre on May 16, 2024
Verified
What are the consequences of price discrimination for a business? What are the consequences for the consumer?
Price Discrimination
The approach of a single supplier offering the same or similar products or services at diverse pricing points in separate markets.
Consequences
Consequences refer to the results or outcomes of actions, decisions, or policies, which can be foreseen or unforeseen, and beneficial or detrimental.
- Delve into the aspects of price discrimination, considering its determinants, methods, and ramifications for both commercial entities and individual buyers.
Verified Answer
MZ
Melissa Z. DunnMay 16, 2024
Final Answer :
Price discrimination results in higher profits for the business; it results in lower prices for the buyer with the greatest elasticity, although the buyers with the less elastic demand may have to pay more now.
Learning Objectives
- Delve into the aspects of price discrimination, considering its determinants, methods, and ramifications for both commercial entities and individual buyers.
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