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
Answered by Salomon L. Economics tutor

2867 Views

See similar Economics IB tutors

Related Economics IB answers

All answers ▸

Consider a competitive market, that has recently had an ad valorem sales tax imposed. Show this on a diagram. What is the impact on the market equilibrium? If the demand curve becomes more inelastic, which side of the market suffers more?


How can I get 8 points out of 8 in Question d of the Economics HL Paper 2?


What is the effect of an indirect tax on the cigarette market?


Explain the possible negative externalities that might arise from the increased use of cars (10 marks)


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2025 by IXL Learning