Price Discrimination (AQA A-Level Economics): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
Price discrimination is based on customers' what, not cost differences?
Price discrimination is based on customers' what, not cost differences?
Ability & willingness to pay
What does price discrimination allow firms to capture and increase?
What does price discrimination allow firms to capture and increase?
More consumer surplus & profits
In rail services, which customers pay higher ticket prices?
In rail services, which customers pay higher ticket prices?
Peak time customers
Peak time rail customers have what type of demand?
Peak time rail customers have what type of demand?
Less elastic demand
To maximise profit in each sub-market, firms set output where what equals what?
To maximise profit in each sub-market, firms set output where what equals what?
What is the first condition for successful price discrimination?
What is the first condition for successful price discrimination?
Identify different customer groups
In which markets should firms charge higher prices?
In which markets should firms charge higher prices?
Where demand is less elastic
What is market seepage?
What is market seepage?
Customers reselling at lower prices
In the European car market, how did seepage occur in the UK?
In the European car market, how did seepage occur in the UK?
Importers bought & resold from Europe
How many key conditions must be met for successful price discrimination?
How many key conditions must be met for successful price discrimination?
Three conditions