Price Discrimination (AQA A-Level Economics): Flashcards

Charging different prices to different customers for same product

Customers' ability and willingness to pay

Capture more consumer surplus and increase total profits

Set $MR = MC$ in each sub-market

Ability to identify different groups of customers

Different price elasticities of demand between groups

Separated markets to prevent seepage

Customers reselling product from low-price to high-price market

Those with less elastic (less price-sensitive) demand

Less elastic demand (must travel at specific times)