ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Examples of price discrimination include issuing coupons, applying specific discounts (e.g., age discounts), and creating loyalty programs. One example of price discrimination can be seen in the airline industry.

Detailed explanation-2: -Price discrimination is when companies offer different prices to different groups of consumers, in order to maximize their revenue. For example, a company might charge a high price for a certain product, but offer the same product at a discount to students or lower-income customers.

Detailed explanation-3: -Two common examples of indirect price discrimination are coupons and quantity discounts. Coupons offer discounts for products and are especially common in grocery stores, where they are usually provided in a free newspaper section at the front of the store. Coupons discriminate on the basis of the cost of time.

Detailed explanation-4: -First Degree Price Discrimination. Second Degree Price Discrimination. Third Degree Price Discrimination. #1 Imperfect competition. #2 Prevention of resale. #3 Elasticity of demand. The Firm. The Consumer.