Economics Price Discrimination Questions
Quantity discrimination in price discrimination refers to the practice of charging different prices based on the quantity of a product or service purchased. This strategy aims to incentivize customers to buy larger quantities by offering lower prices per unit for bulk purchases. By doing so, businesses can increase their overall sales volume and potentially maximize their profits. Quantity discrimination can be seen in various industries, such as wholesale markets, where customers who purchase larger quantities receive discounted prices compared to those who buy smaller quantities.