Price discrimination is often used by businesses. Explain the conditions under which price discrimination is practiced

What will be an ideal response?

Three conditions make price discrimination possible. First, the seller must be a monopolist, or possess some degree of power to control the price of the product. Second, the seller must be able to segment the buyers of the product into different groups that reflect differing willingness to pay for the product. Third, the buyers who have the opportunity to purchase at a lower price cannot resell the product to the buyers who must purchase the product at a higher price.