Question

Businesses can “price discriminate” by charging a higher price to buyers with more inelastic demand, and a lower price to buyers with more elastic demand. Supermarkets and department stores do this with coupons, for example. Coupon-clippers have more-elastic demand, so they’re willing to spend time clipping coupons in order to get the lower price. People who are not eager to use coupons, on the other hand, have less-elastic demand and so they’re OK with paying the higher non-discounted prices. In what other ways do you see “price-discrimination” play out in business? Does your company do it? Or, does your organization see it done by some of your suppliers? [NOTE: For it to be “price discrimination”, the difference in price must NOT be due to differences in the cost of serving the two groups of buyers.]

Answer 1

It can actually be mentioned that businesses can actually price discriminate using various methods where one observation is that regarding the quantity where if I buy more amount then the average price charged is reducing per unit then when I buy less quantity and this is one way of price discrimination. Apart from that there are certain schemes in restaurants where it is discounted bill of 50% for students and this is also example of price discrimination and because I have worked in a restaurant this type of discrimination is shown in my organisation