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Price Discrimination
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Concept Version 6
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Elasticity Conditions for Price Discrimination

Price discrimination

Price discrimination

A producer that can charge price Pa to its customers with inelastic demand and Pb to those with elastic demand can extract more total profit than if it had charged just one price.

Source

    Boundless vets and curates high-quality, openly licensed content from around the Internet. This particular resource used the following sources:

    "Price discrimination (third degree)."
    http://en.m.wikipedia.org/wiki/File:Price_discrimination_(third_degree).svg Wikipedia CC BY-SA.

Related Terms

  • price discrimination
  • revenue
  • incentive
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