Economics:
10th Edition
ISBN: 9781285859460
Author: BOYES, William
Publisher: Cengage Learning
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Chapter 25, Problem 3E
To determine
To explain:
The reasons why the seller avoids
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what are pricing tactics and examples? What are some forms of price discriminations?
One example of price discrimination is when movie is
newly released the ticket price for movie theater and
price of DVD's are very expensive. After some time, the
same movie ticket and DVD price become cheaper. Use
this example to discuss the benefits and potential
negative consequences of a price discrimination pricing
strategy.
Define price discrimination. Give two examples of price discrimination. How does perfect price discrimination affect consumer surplus, producer surplus and total surplus?
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- In terms of reality, could you show that it is easier for a firm to practice second-degree price discrimination than it is for a firm to practice first-degree price discrimination? If you can use a graph, that would help me understand thank you.arrow_forwardHersheypark in Pennsylvania mentions the following offer on its Web page: “A military discount is available at Hersheypark during the regular summer operating schedule off of the Regular, Junior and Senior One Day admission. This discount is available to active duty military, reserves, retired military personnel, and members of the National Guard.” This is _____ price discrimination.arrow_forwardSome pizza joints charge more for delivered pizza than if customers pick up the pizza at the restaurant. Explain how this might be an example of third-degree price discrimination and provide another explanation for this pricing difference other than price discrimination.arrow_forward
- Tara loves to go through the Saturday paper and cut out supermarket coupons. How do you think Tara's coupon-clipping habits apply to the concept of price discrimination?arrow_forwardList two things that first-order price discrimination and two-part tariff have in common.arrow_forwarda) Why does TRUVADA cost $1,780 in the United States whereas it's just $8 in Australia?b) Can you provide other examples of price discrimination?arrow_forward
- Suppose that Jawa Timur Park offers a discount on admission to residents of Batu. What kind of price discrimination is this? What does this imply about the elasticity of demand for Jawa Timur Park attractions by Batu?arrow_forwardSuppose you were asked to manage a golf course that was currently charging a uniform price. Would you suggest that the course continue with this price plan or switch to a two-part pricing plan? Explain your decision and how you would choose the optimal price.arrow_forwardindirect price discrimination. Discuss the grocery store coupon market and explain why the grocery stores can use price discrimination in this situation.arrow_forward
- why price discrimination is profitable in the perfume market or industry ?arrow_forwardWhat can you say about the price, with and without price discriminationarrow_forwardIf price discrimination is the option to implement within the context of elasticity of demand, what pricing policy should be implemented in each market to raise total revenue?arrow_forward
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