Asked by Norma Lopez-Bravo on Sep 24, 2024
Many bars close to campuses have started offering cheaper beer to consumers with a student ID.These bars
A) Assume students have an inelastic demand curve
B) Assume students have an elastic demand curve
C) Are practicing price discrimination
D) Both b and c
Inelastic Demand
A market situation where the demand for a product does not significantly change in response to price changes.
Elastic Demand
A situation in the market where the desire for a product or service sharply varies with the adjustments in its cost.
Price Discrimination
The practice of charging different people or groups of people different prices that are not cost justified.
- Distinguish between direct and indirect price discrimination.
- Comprehend the reasons behind offering discounts to specific groups like students or seniors.
Learning Objectives
- Distinguish between direct and indirect price discrimination.
- Comprehend the reasons behind offering discounts to specific groups like students or seniors.
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