Description
Question :Discuss the pricing policy of price discrimination. Provide the economic reasoning for movie theaters, airlines, and many other businesses to charge customers different prices based on time of the day, age, and purchase dates. Why?Provide an example of a price discrimination for a good or service that you considered unfair. Do you still believe that the discrimination is unjustifiable?
250 words
Question: An important law in economics is the “Law of Diminishing Marginal Utility”. Discuss what this law is and provide an example of diminishing marginal utility you’ve encountered recently.
250 words
Explanation & Answer
Find attached work, thank you. Please let me know if everything is ok. I will be happy to help with more assignments in the future.
Running head: QUESTION RESPONSES
1
Question Responses
Student’s Name
Date
QUESTION RESPONSES
2
Question 1
Price discrimination refers to a pricing policy which charges consumers varying prices
for identical services or goods based on a specified criterion (Colombo, 2015). Under pure price
discrimination, providers tend to charge consumers the maximum price they are willing to pay.
Additional forms of price discrimination include grouping customers according to certain
attributes such as age, time of purchase and purchase dates whereby each group is charged a
different price (Colombo, 2015). Notably, there are three types of prices discr...