Economics Supply And Demand Questions
Price discrimination refers to the practice of charging different prices for the same product or service to different groups of consumers. This strategy is employed by firms to maximize their profits by segmenting the market based on consumers' willingness to pay. Price discrimination can be achieved through various methods, such as offering discounts to certain customer groups, implementing tiered pricing structures, or providing personalized pricing based on individual characteristics or purchasing behavior. The goal of price discrimination is to capture the consumer surplus and extract as much value as possible from different segments of the market.