NEED SOME TUTORING ADVICE REGARDING QUESTIONS FROM TEXT (ATTACHED BELOW)

Have you ever been charged a lower price (and I do not mean when you bought 'on sale') that others? On what basis?

Have you ever been charged a higher price that other groups?

Is this fair? Is this legal?

TEXT

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CONSIDER THIS. . . Price Discri- mination at the Ballpark Take me out to the ball game Buy me some peanuts and Cracker jack . .. Professional baseball teams earn substantial revenues through ticket sales.To maximize prot. they offer signicantly lower ticket prices for children (whose demand is elastic) than for adults (whose demand is inelastic).This discount may be as much as 50 percent. If this type of price discrimination increases revenue and prot. why don't teams also price discriminate at the conces- sion Stands? Why don't they offer half-price hot dogs. soft drinks. peanuts, and Cracker jack to children? The answer involves the three requirements for successful price discrimination.All three requirements are met for game tickets: ( l)The team has monopoly power: (2) it can segregate ticket buyers by age group. each group having a different elastic- ity of demand; and (3) children cannot resell their discounted tickets to adults. It's a different situation at the concession stands. Specically. the third condition is not met. If the team had dual prices, it could nOt prevent the exchange or \"resale" of the concession goods from children to adults. Many adults would send children to buy food and soft drinks for them: \"Here's some money. Billy. Go buy six hot dogs." In this case. price discrimination would reduce. not increase. team prot.Thus. children and adults are charged the same high prices at the concession stands. (These prices are high relative to those for the same goods at the local convenience store because the stadium sellers have a captive audience and thus considerable mon0poly power.)