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PRICE DISCRIMINATION WITHPRACTICAL EXAMPLESDiksha Gupta100906031
WHAT IS PRICE DISCRIMINATION? Price discrimination or pricedifferentiation exists when sales of identical goodsor service...
DISCRIMINATION CAN BE DONEON THE BASIS OF: Age Sex Quantity purchased Time of purchase income
THREE CONDITIONS : Market control Different buyers Segmented buyers
TYPES OF PRICE DISCRIMINATION First degree price discrimination:This first type of product pricing is based on thesellers...
SECOND DEGREE PRICE DISCRIMINATION Second-degree price discrimination takes placewhen a firm identifies two or more diffe...
THIRD DEGREE PRICE DISCRIMINATION A form of price discrimination in which a sellercharges different prices to groups that...
EFFECTS OF PRICE DISCRIMINATION: Consumer surplus decreases Firm profits increase Output is increased social welfare a...
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Price driscrimination

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Price driscrimination

  1. 1. PRICE DISCRIMINATION WITHPRACTICAL EXAMPLESDiksha Gupta100906031
  2. 2. WHAT IS PRICE DISCRIMINATION? Price discrimination or pricedifferentiation exists when sales of identical goodsor services are transacted at different prices fromthe same provider Price discrimination is also when the same price ischarged for the consumer from different areas whilethe cost of production is different.
  3. 3. DISCRIMINATION CAN BE DONEON THE BASIS OF: Age Sex Quantity purchased Time of purchase income
  4. 4. THREE CONDITIONS : Market control Different buyers Segmented buyers
  5. 5. TYPES OF PRICE DISCRIMINATION First degree price discrimination:This first type of product pricing is based on thesellers ability to determine exactly how much eachand every customer is willing to pay for a good.The seller will take the time to bargain or haggle withthe customer about the price that customer iswilling to pay.
  6. 6. SECOND DEGREE PRICE DISCRIMINATION Second-degree price discrimination takes placewhen a firm identifies two or more different groupswith different demand elasticity based on thequantities purchasedIn this case the seller charges a higher per-unitprice for fewer units sold and a lower per-unit pricefor larger quantities purchased.
  7. 7. THIRD DEGREE PRICE DISCRIMINATION A form of price discrimination in which a sellercharges different prices to groups that aredifferentiated by an easily identifiablecharacteristic, such as location, age, sex, or ethnicgroup.
  8. 8. EFFECTS OF PRICE DISCRIMINATION: Consumer surplus decreases Firm profits increase Output is increased social welfare and equity More consumers will now buy the product
  9. 9. THANK YOU

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