Principles of Microeconomics / Unit 8 MIC 0725 short lesson, about 20 seconds
Price Discrimination
Captions available
The idea
Price discrimination is charging different prices to different buyers for the same good when the cost of serving them is the same. A price setter does it to raise profit above the single-price result.
In practice
Student and senior fares; weekend airfares; children's tickets.
Where people slip
Different prices for different costs, such as delivery, are not discrimination. The test is same good, same cost, different price.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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