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, with the help of diagrams, the effect of an increase in the price of petrol is likely to have on (i) The market for cars. (ii) The market for coal.
What are the determinants of price elasticity of demand?
Explain how higher interest rates can impact the aggregate demand level in an economy and help close an inflationary gap?
Explain the meaning of the law of demand, and using examples and diagrams, distinguish between movements along and shifts of the demand curve.