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Price DiscriminationMovie theaters, airlines, and many other businesses like 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 thought it to unfair. Do you still believe that the discrimination is unjustifiable?Minimum 300 words and cite properly using APA formatChapters 4 and 5 are the chapters covered for this400 wordsref and cite the bookAnswer preview………Price discrimination is dependent on demand’s elasticity of a product’s supply within particular market demands. Demand’s price elasticity is obtained from consumer’s responsiveness within a market, given that the change in products or quantity of services demanded to the change in price with assumptions that all influential factors concerning demand remain unchanged (Rittenberg, 2008). This kind of price discrimination is identified as third-degree price discrimination due to the aspect of the seller basing the prices from the characteristics of the buyers such as age,

sex, purchase dates, time of the day and location. Such a group of people is identified as buyers group (Third-Degree Price Discrimination, 2014). According to estimations by economists, various elasticities involving young people between the ages of 18 and 30 are considered to be higher compared to those involving people with more than 30 years (Rittenberg, 2008).Therefore, the buying group that composes youthful people has a likelihood of being affected demand’s price elasticity. Sometimes, firms take advantage due to price discrimination and make a maximum profit or sell supply surplus in the traveling industry in high demand periods. For the occurrence of price discrimination, the commodity has to be a “price maker displaying a demand curve that slopes downward” (Price Discrimination, 2014) in combination with maximizing price elasticity on different buying groups. Firms consider the marginal revenue made in every buyer group according to the marginal cost of every demand’s price elasticity………. APA 490 words
$8.00 – Purchase Checkout