Under what conditions can a firm sell the same product at different prices?
If the firm is able to identify the prices that each customer is willing to pay for their product, and if the company is able to charge different customers different prices. This practice is called price discrimination. Examples include museums that ask for a student card to offer students a discount; Airline websites that charge different prices to different customers based on the customers' cookies.
SL
Related Economics IB answers
All answers ▸Explain the meaning of the law of demand, and using examples and diagrams, distinguish between movements along and shifts of the demand curve.
The supply function for the production of good A is P=50+45Q. The demand function is P= 100-5Q. Find the equilibrium price and quantity.
What is the effect of an indirect tax on the cigarette market?
What are minimum prices and what are the effects of minimum prices?