Z sells cameras to A, B, C, and D for $160 per camera. Y, one of Zs

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Z sells cameras to A, B, C, and D for $160 per camera. Y, one of Z’s competitors, sells a comparable camera to A for $148.50.

Z, in response to this competitive pressure from Y, lowers its price to A to $148.50. B, C, and D insist that Z lower its price to them to $148.50, but Z refuses. B, C, and D sue Z for unlawful price discrimination. Decision? Would your answer differ if Z reduced its price to A to $140? Explain.

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