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Define the term price discrimination as used in economics and give the necessary conditions which must be fulfilled for the implementation of price discrimination

      

Define the term price discrimination as used in economics and give the necessary conditions which must be fulfilled for the implementation of price discrimination.

  

Answers


Abdullahi
Price discrimination refers to a situation whereby the same product is sold at different prices to different buyers.

The conditions necessary for the implementation of price discrimination include;

a. The market must be divided into sub market

b. Different sub markets must have different price elasticity

c. There must be effective separation of the subject markets so that no reselling can take place from a lower market to a higher market
Dullayo answered the question on May 15, 2018 at 11:45


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