1. In anticipation for the Halloween Tesco sells Smarties, Munchies, Fruit Pastilles, Little Rolos and Milky Bar Buttons in tubes each for 1, or 3 tubes for 2 (3-for-2 offer). Is this a form of price discrimination? If yes, which one and why?
2. ANSWER:So "3 for 2" can be seen as second-degree price discrimination to extract consumer surplus. People who really like candy and/or Halloween will buy 3 or more tubes, others will buy just 1.

Hi, so the answer is provided but I am not understanding it, please explain what is the first price discrimination, second price discrimination and third price discrimination? And how would you deal with this problem in explanation?