When many people hear the word discrimination, they immediately think of race or gender discrimination which is illegal in the USA. Price discrimination, however, is legal and has nothing to do with race or gender. By definition: Charging different people different prices is legal as long as it does not use other forms of discrimination as the basis of the pricing model. Please note that prices must be made available for all to see and no two individuals making a purchase at the same time and same place are charged different prices unless qualifying criteria are met.

1. Describe a business that uses price discrimination, the pricing model, and how it is not considered illegal (meaning how it is legal to do).
2. Are there situations in which price discrimination is unfair and should be considered illegal (remember to not confuse the word discrimination with price discrimination.
3. Lastly, evaluate the profitability of using different prices for different people. That would mean that some people are paying more, while others are paying less. This would suggest less profits, so why not just charge everyone the same high price??? Explain your understanding of how price discrimination works to maximize profits for the business.