Question
hi please help me with this question... In each of the following, state whether it is a case of price discrimination or not. If it
hi please help me with this question...
In each of the following, state whether it is a case of price discrimination or not. If it is not a case of price discrimination, briefly explain why. If it is a case of price discrimination, (i) state whether it is an example of first-, second-, or third-degree price discrimination, (ii) identify the consumers with high and those with low price elasticity of demand, and (iii) explain briefly how the firm implementing it is able to prevent consumers that pay a lower price from purchasing more than they need to re-sell to the consumers that are being charged a higher price.
- (a)Dented canned goods are marked down by 50%. (5 pts.)
- (b)Restaurants have senior citizen discounts. (5 pts.)
- (c)Plane tickets purchased months in advance are cheaper than those purchased at the last minute. (5 pts.)
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