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Universities tend to set tuition high and then, through financial aid, effectively charge each student a different price for education. Financial aid statements allow the

Universities tend to set tuition high and then, through financial aid, effectively charge each student a different price for education. Financial aid statements allow the university to determine the student's financial status and set an appropriate price to charge the student. This situation is an example of

first-degree price discrimination.

second-degree price discrimination.

third-degree price discrimination.

a two-part tariff.

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