Economics
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Boundless Economics
Monopoly
Price Discrimination
Economics Textbooks Boundless Economics Monopoly Price Discrimination
Economics Textbooks Boundless Economics Monopoly
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Concept Version 6
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Examples of Price Discrimination

Price discrimination

Price discrimination

These graphs show multiple market price discrimination. Instead of supplying one price and taking the profit (labelled "(old profit)"), the total market is broken down into two sub-markets, and these are priced separately to maximize profit. The graph shows how a seller wants to generate the most revenue possible for a good or service. The elasticity of a market influences the profit.

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.wikipedia.org/wiki/File:Price_discrimination_(third_degree).svg Wikipedia CC BY-SA.

Related Terms

  • surplus
  • price discrimination
  • revenue
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